The resolution professional of beleaguered Orchid Pharma has called for fresh expressions of interest (EoIs) from potential investors for submitting resolution plan for the Chennai-based company.
The move comes close on the heels of the Chennai bench of the National Company Law Tribunal (NCLT) annulling the approved resolution plan of US-based lngen Capital Group and ordering fresh corporate insolvency resolution process (CIRP). The deadline for receiving EoIs has been fixed as March 19.
The RP had informed the NCLT that companies such as Divis Laboratories, Gland Celsus Biochemicals and Fidelity Trading Corporation, ART Capital, Everstone Group, Aion Capital, Piramal Capital and Finquest group have expressed interest in proposing resolution plans for Orchid Pharma.
The NCLT declared invalid the approved resolution plan by Ingen as the company had failed to bring in the promised money even after the stipulated time and despite the bench giving it an option to pay one third of the amount to take the proceedings further.
Since there has been no second resolution plan available, the tribunal ordered that the CIRP should be commenced afresh from the stage of invitation of expression of interest and be completed in 105 days.
The resolution plan by Ingen Capital Group was approved by the NCLT on September 17, 2018, after the committee of creditors (CoC) had cleared it. As per the resolution plan, which was for `1,490 crore, Ingen was to infuse `1,060 crore within five days of the plan approval.
When the company failed to pay the amount, the RP moved the NCLT, and on October 10, 2018, it ordered Ingen to deposit the upfront amount into the financial creditors’ escrow account.
Ingent moved the NCLAT against this order, but the appeal tribunal referred the case back to the NCLT to pass appropriate orders and posted the case for March 1.
The NCLAT, after hearing the counsel for Ingen who submitted that without receiving certain information and documents, as asked for by the company, it would not be possible to deposit the upfront amount pursuant to the approved resolution plan, ordered issuing of showcause notice to officials of the company.
The NCLAT ordered that showcause notice be issued to the directors of Ingen Capital Group, namely Umesh Bhatia and authorised representative Harish Bhatia, as to why appropriate action should be not taken against them; and the NCLT, the Centre and its agencies be not asked to take appropriate steps against the company and its directors and why cost not be imposed on them.
When the matter came up on March 1, the NCLAT, after finding that no reply to the showcause notice was received, directed Umesh Bhatia and Harish Bhatia to file replies within three weeks, failing which the NCLAT may initiate contempt proceeding against them and issue bailable warrant of arrest.
Source: Financial Express, March 5, 2019