Orchid Chemicals & Pharmaceuticals is planning to repay Rs 700 crore of debt from the Rs 1300 crore Hospira to the lenders, which the company is expecting to conclude by April. The Corporate Debt Restructuring Empowered Group has issued the letter of approval for debt restructuring package on March 10. According to the terms of debt restructuring, the company will sell and transfer its penicillin and penems (including carbapenems) active pharmaceutical ingredient business together with its manufacturing facilities at Aurangabad, Maharashtra and associated research and development facility at Sholinganallur, Chennai.
From the sale proceeds, company will repay part of its debt, amounting to Rs 700 crore, to the lenders, while rest of the debt Rs 2,866 crore will be restructured. The restructured debt together with funded loans would have to be repaid over 8 years starting from April 2015.
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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