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Orchid Chemicals and Pharmaceuticals Ltd, which has a debt of $500 million (Rs 2,990 crore) is moving the corporate debt restructuring cell, seeking to recast around $300 million of its debts.
The company hopes to repay part of the debt by using the money it would get from a deal with US multinational Hospira Inc.
Earlier, it had agreed to sell its penem and penicillin business to Hospira for $200 million. “We are proposing the banks to restructure the remaining amount, which is aorund $300 million,” said C H Ram, head-corporate communications and investor relations, Orchid.
Besides seeking more time to repay the debt, the company has also asked the lenders to give money for working capital. The quantum of the loan is yet to be decided and it will be discussed during a meeting with the bankers, he added.
Orchid's per quarter interest outgo towards its borrowings currently is at around Rs 70 crore. Around 18-20 banks have lent money to company.
It reported a 45 per cent drop in revenue during the fourth quarter at Rs 268 crore from Rs 491 crore a year ago.
“To produce we need money. The company has got orders in hand for the next six-eight months. At present, the company's manufacturing facilities runs at only around 60-65 per cent capacity,” said Ram.
