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Bankrupt Orchid Pharma Rejects Only Bid for being too low

Bankrupt Orchid Pharma Rejects Only Bid for being too low

New Delhi: Orchid pharma has invited a fresh bidding after the company has found the only eligible bid for takeover of the company to be low.

The development was taken after a meeting was held on April 20, 2018, by the committee of creditors of Orchid Pharma.

The company has informed BSE that three bids were received by resolution professional on 10th April 2018. Out of these, two bids were found to be non- compliant under Section 29A of The Insolvency and Bankruptcy Code (Amendment) Act, 2017 by resolution professional and thereby stand rejected.

While in the case of the third bid, which is only the eligible bid, the consideration was found to be low and hence, the committee of creditors rejected the bid.

The committee of creditors of Orchid Pharma has authorized resolution professional to initiate a fresh round of bidding and with a deadline for submission of resolution plans on or before 5 PM on 25th April ants (Wednesday).

The company has also said that the resolution applicants who participated in the earlier rounds of bidding are also eligible to participate in this round of bidding.

ET has reported that the three bids were received from Ingen Capital, Fidelity Trading Corporation which was ineligible and Union Quimico Farmacéutica, the only eligible bid. Union Quimico is a subsidiary of Hyderabad-based Vivimed Labs.

An official told ET, “Although the bid of Union Quimico Farmacéutica was eligible, lenders were not interested since it offered just about Rs 600 crore payable over 3-6 years.”

Last year, Orchid Pharma was referred to the bankruptcy court by Lakshmi Vilas Bank in financial claims of Rs 3,500 crore. The company exports active pharmaceutical ingredients (APIs) of antibiotics and has two US Food and Drug Administration-approved manufacturing plants.

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Source: with inputs
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