Orchid Chemicals & Pharmaceuticals’ promoters are planning to increase their stake in the company to 45%. In this regard, the company’s board has approved the issue of shares to Promoters on a preferential basis pursuant to the conditions of CDR package sanctioned to the Company by Corporate Debt Restructuring Cell.
Orchid, which has been having high levels of debt since it successfully redeemed its outstanding FCCBs in February 2012, approached the CDR Empowered Group for restructuring its debt profile in June 2013. The approval for the CDR Package was received in March 2014.
The company also entered into a Business Transfer Agreement (BTA) with Hospira for the sale and transfer of its Penicillin and Penem API business and the API facility located in Aurangabad (Maharashtra) together with the R&D Centre located in Chennai. This business transfer was added as a part of the restructuring process into the CDR package.
Orchid Chemicals & Pharmaceuticals is a pharmaceutical company engaged in development and manufacture of active pharmaceutical ingredients (APIs) and finished dosage forms. It is also engaged in research of new drugs. The company was incorporated in the year 1992 as a 100% export-oriented unit (EOU).
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