Orchid Chemicals gets NOC to sell beleaguered business

Cash-strapped Orchid Chemicals has received all the permissions, including no-objection certificate from IDBI Bank, to sell its assets to Hospira Inc.

The company, which was supposed to sell its assets including active pharmaceutical ingredients (API) business and a R&D facility to the US-based Hospira Inc for USD 200 million by the end of March 2013, has been struggling with severe liquidity crunch resulting into lower production.

Orchid said it has registered a loss of Rs 132.27 crore for the quarter ended March 2013 as against a net profit of Rs 20.55 crore in the corresponding quarter last year.

The board of the company said transaction period for the deal has been extended to June 30 and Orchid will move to conclude the transaction at the earliest.

Story first published: Tuesday, June 18, 2013, 9:22 [IST]
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