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Orchid Pharma says closer to resolution as RP has received three plans

NCLT had earlier cancelled the resolution plan by US-based Ingen Capital after it refused to infuse the upfront amount, seeking certain data from the drug maker.

Gireesh Babu  |  Chennai 

The revenue from operations declined to ~69.7 bn for the fourth quarter against ~71.3 bn during the same period last year
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Ltd is one step closer to finalising its second attempt to find a resolution plan under the Corporate Insolvency Resoltuion Process (CIRP) it initiated earlier, as the Resoltuion Professional (RP) received three resolution plans as on May 17, 2019.
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The (NCLT) had earlier cancelled the resolution plan by US-based after it refused to infuse the upfront amount, seeking certain data from the company.
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According to a company filing with the exchanges, has said that the RP has received three resolution plans from prospective resolution applicants as on May 17, 2019.
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Resolution plans were invitied on April 10, as per the order from NcLT on February 28, 2019, and the last date of submission of the plans was on May 10, which was later extended to May 17.
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The RP will evaluate the resolution plans now and the compliant ones would be placed before the (CoC), which is expected to meet late this week or early next week to take it forward. As per the timeline fixed by the NCLT, the 105 days' time allowed by the Tribunal to conclude the selection of resolution plan will end on June 13.
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Earlier during the month, the company had said the potential investors have urged the RP to share the provisional financials of the company for 2018-19, before submission of resolution plan.
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The RP responded stating that the statutory audit for FY19 would not be completed before the due date for submission of resolution plans as the audit is for the full financial year.
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As is a listed entity and the details sought for are price sensitive, the RP informed CoC that the financial information requested would also be uploaded in the website of the company, he added.
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The RP refused to comment on the investors who have submitted the resolution plan now. Earlier in a submission with the NCLT, related to the non-payment of upfront amount by Ingen Capital, the RP has said he had received e-mails from Divi's Laboratories Ltd, and and oral enquiries from (India) Pvt Ltd, Everstone Group, Capital, and expressing interest in proposing Resolution Plans.
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Recently, the National Company Law has directed the to take action against US-based investor Group LLC, its and other directors for not implementing its resolution plan for Chennai-based Orchid Pharma after its proposal being selected by the (CoC) and (NCLT) for implementation. The action comes on an appeal filed by against the Resolution Professional (RP) earlier with the
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The directed the through the to take appropriate steps aainst Ingen Capital Group and its and other Directors who tried to take advantage of ths resolution process but later on failed to implement its proposal without any basis and imposed a cost of Rs 10 lakh on Ingen Capital to be paid in favour of CoC within 30 days.
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The Bench observed that while earlier it was given opportunity to deposit the upfront amount but Ingen Capital failed to deposit the same.
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Ingen Capital approached the NCLAT with an appeal assailing the order passed by the NCLT Bench directing to deposit one third of Rs 1000 crore payable to secured creditors. The Appellate Tribunal directed it to unconditionally agree to deposit at least Rs 1000 crore with the NCLT, Chennai, Registrar.
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Ingen Capital's resolution plan was approved by the NCLT on September 17, 2018, and as per the approved Resolution Plan, Ingen Capital was expected to deposit Rs 1000 crore upfront to the financial creditors, while the resolution plan was approved for consideration of Rs 1490 crore with a considerable haircut to the Banks.
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Ingen Capital had to pay the amount in 30 days and settle the banks by that time. A consortium of 24 banks has lent a total of over Rs 3200 crore to the drug maker.
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With Ingen Capital allegedly not paying the upfront money, NCLT has directed it to pay one third of the payment due to the financial creditors of the company, which is around Rs 334 crore, in a fixed timeframe.
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It was at this point Ingen Capital approached the NCLAT with its appeal. Earlier, Ingen Capital had alleged a difference between the assets they had been shown and the actual situation on ground. The allegation was denied by the RP.
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For Ingen Capital, this was its second unsuccessful bid for Orchid. The private equity investor’s earlier bid, lower than the liquidation value of Orchid, was almost thrown out by the CoC. Ingen Capital later offered to pay Rs 100 crore more than the liquidation value and this was subsequently approved by the panel, and then by the NCLT.
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Meanwhile, the NCLT nullified Ingen Capital's resolution plan and allowed 105 days to the RP and the CoC to carry out fresh expression of interest, the deadline which will come to an end in the middle of June, this year.
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First Published: Mon, May 20 2019. 11:54 IST
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