Ready to revise resolution plan for Orchid Pharma: Accord to NCLT

Industry:    2019-06-20

Even as the resolution plan of Dhanuka Laboratories for the Orchid Pharma insolvency process is with the National Company Law Tribunal (NCLT), Chennai-based Accord Life Spec Pvt Ltd has told the tribunal that it is ready to revise its proposal to Rs 615 crore.

Accord Life Spec is a part of the Rs 1,700 crore Accord group, established by DMK leader and former Union minister of state S Jagathrakshakan. The group has diversified interests in medical education, a technical university, hospitals, breweries and hotels. In an application filed with the tribunal, Accord said that the decision of the resolution professional to propose Dhanuka Laboratories’ resolution plan (RP) as approved by the committee of creditors (CoC) is procedurally illegal under the Insolvency and Bankruptcy Code (IBC). Claiming that the resolution plan it has submitted is a viable one, Accord Life Spec said it is “willing to revise and increase the value in the resolution plan after negotiations with the CoC, if an opportunity is given to the applicant herein.”

It also submitted that “At present, Accord has proposed to pay a revised sum of Rs 615 crore to the CoC, which has not been placed to the CoC at any instance. The applicant (Accord) submits that there is a legitimate and fair chance of there being a proper revival with higher value of recovery for creditors if the applicant herein is given an opportunity to present its plan to the CoC.”

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