Wanbury settles Doctors Organic debt at discount

Wanbury, a bulk drugs manufacturing firm, has entered into a one-time settlement of loans taken by Doctors Organic Chemicals (DOCL)
at steep discounts.

This follows Wanbury's acquisition of 51% stake in DOCL, which has been referred to the Board for Industrial and Financial Restructuring (BIFR).

Wanbury paid Rs 6.48 crore to Industrial Development Bank of India (IDBI) to settle a loan of Rs 19.20 crore - a 66% discount to the outstanding loan. It settled the Rs 4.81 crore loan of Industrial Financial Corporation of India (IFCI) for Rs 3.22 crore - a discount of 33%.

Wanbury said the process of debt settlement with the two financial
institutions was completed last week.

Ashok Shinkar, director (corporate finance) of Wanbury, said the settlement of loans lays the foundation to carry forward the merger process through BIFR and to consolidate the working of DOCL with Wanbury.

Wanbury exports bulk drugs to regulated markets like the US, and has a USFDA approved plant at Patalganga in Maharashtra. The acquisition of DOCL will bring into Wanbury's fold another US FDA approved facility.

DOCL has a multi-product facility in Andhra Pradesh, and has the potential to provide contract manufacturing services to global pharma majors and other existing clients of Wanbury.

Shinkar said Wanbury is also in the process of acquiring Pharmaceutical
Products of India (PPIL). It is currently in negotiations with about 18 banks to which PPIL owes Rs 60 crore.