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

21/05/2019

Chennai: Orchid Pharma 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.
The National Company Law Tribunal (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 pharmaceutical company.
According to a company filing with the exchanges, Orchid Pharma has said that the RP has received three resolution plans from prospective resolution applicants as on May 17, 2019. 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. The RP will evaluate the resolution plans now and the compliant ones would be placed before the Committee of Creditors (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. 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. 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. As Orchid Pharma 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.
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, Gland Celsus Biochemicals Pvt Ltd and Fidelity Trading Corporation and oral enquiries from ART Capital (India) Pvt Ltd, Everstone Group, Aion Capital, Piramal Capital and Finquest Group expressing interest in proposing Resolution Plans.
Recently, the National Company Law Appellate Tribunal has directed the Central Government to take action against US-based investor Ingen Capital Group LLC, its managing director and other directors for not implementing its resolution plan for Chennai-based Orchid Pharma after its proposal being selected by the Committee of Creditors (CoC) and National Company Law Tribunal (NCLT) for implementation. The action comes on an appeal filed by Ingen Capital against the Resolution Professional (RP) earlier with the Appellate Tribunal.
The Appellate Tribunal directed the Central Government through the Ministry of Corporate Affairs to take appropriate steps aainst Ingen Capital Group and its Managing Director 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.
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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