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NCLT dissolves Orchid Pharma's promoter firm, says no gain for shareholders

CoC says parent firm has no assets other than holding in Orchid Pharma, which itself is undergoing CIRP; Even if there is a resolution for Orchid Pharma, nothing would be left for investors

NCLT, IBC
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Illustration: Binay Sinha

Gireesh Babu Chennai
The National Company Law Tribunal (NCLT) has dissolved Orchid Healthcare Pvt Ltd (OHPL), the promoter company of debt-ridden Orchid Pharma Ltd, as it does not have any assets and a liquidation process under the Corporate Insolvency Resolution Process (CIRP) would only entail additional cash outflow without benefits.

OHPL holds around 22.64 per cent in Orchid Pharma, 99.99 per cent of which has been pledged with the pharmaceutical manufacturer's consortium lenders.

The Committee of Creditors (CoC) has said that OHPL does not possess any valuable assets other than the shares it holds in Orchid Pharma and since the latter is also

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First Published: Dec 31 2019 | 8:31 PM IST

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