NCLT to start insolvency proceedings against Orchid Pharma

The National Company Law Tribunal (NCLT), Chennai Bench, has admitted a petition filed by Laxmi Vilas Bank in its capacity as operational creditor under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Orchid Pharma. The said order provides for initiating the corporate insolvency resolution process (CIRP) and the appointment of an interim resolution professional to take charge of the management of the company.
 
The company is in the process of exploring suitable legal recourse, including an appeal before the National Company Law Appellate Tribunal (NCLAT) in consultation with its counsel, informed Orchid Pharma in a BSE filing on Tuesday post market hours.
 
Engaged in the development, manufacture and marketing of various bulk actives, formulations and nutraceuticals, Orchid Pharma was trading at Rs 21.80 per share, down by Rs 2.15 or 8.98% as at 0928 hours on Wednesday, on the BSE. The stock traded on a new 52-week low value of Rs 21.