NCLT initiates insolvency proceedings against Orchid Pharma

Firm exploring options to appeal against the order following consultations with legal counsel

The National Company Law Tribunal (NCLT) has issued an order to appoint an interim resolution professional (IRP) to take charge of the management of the Chennai-based listed pharmaceutical firm Orchid Pharma Ltd.

The company, in a regulatory filing, said that the order issued by the Chennai bench, admitting the petition filed by an operational creditor Lakshmi Vilas Bank Ltd, initiates corporate insolvency resolution process (CIRP) against the pharmaceutical firm.

The company is in the process of exploring a suitable legal recourse, including preferring an appeal before the NCLT following consultations with its legal counsel.

Orchid Pharma, once a leader in injectables and some of the Active Pharmaceutical Ingredients (API) manufacturing, has been suffering from a financial crisis for a number of years now and its investors and lenders have approached various legal forums in their lookout for a remedy.