NCLT orders initiating insolvency proceedings against Orchid Pharma

The National Company Law Tribunal (NCLT)  has issued an order to appoint an Interim Resolution Professional to take charge of the management of Chennai-based pharmaceutical firm Orchid Pharma Ltd.

Orchid Pharma may appeal against the insolvency proceedings initiated against it after a petition by one of its lenders, Lakshmi Vilas Bank, was accepted by the National Company Law Tribunal. Orchid had taken a Rs 50 crore loan from Lakshmi Vilas Bank, backed by real-estate assets, which it failed to repay, according to the court order.

The company is exploring suitable legal recourse, including an appeal before the National Company Law Appellate Tribunal, it said in a stock exchange filing.

Orchid Pharma, once a leader in injectables and some of the Active Pharmaceutical Ingredients (API) manufacturing, has been facing a financial crisis with various lenders and investors approaching various legal forums for remedy.