Committee of Creditors rejects resolution plan: Orchid

Chennai-based Orchid Pharma Ltd., which is under insolvency proceedings, said no resolution plan was found for revival of the firm at the end of the 270-day time frame.

”In the third round of submission of resolution plans, the Resolution Professional [“RP”] had received resolution plans from four resolution applicants on April 25, 2018. At the Committee of Creditors [“CoC”] Meeting held on 3rd May 2018, the RP had presented resolution plans from three resolution applicants that were in compliance with Section 29A of Insolvency and Bankruptcy Code (Amendment) Act, 2017,” it said in a stock exchange filing.

However, it did not disclose the name of the bidders.

Accordingly, the resolution plan was discussed at the CoC Meeting held on May 8, 2018.

After discussion, the CoC asked the RP to have an e-voting for voting on the said resolution plan. In the e-voting that ended on May 12, 2018, the CoC had rejected the resolution plan, Orchid said.

In light of the above, it might be noted that the maximum period permitted for the completion of resolution was May 14, it added.

As the proposed resolution plan that was put for voting did not get requisite approval, the CoC, through the RP, has not submitted a resolution plan with National Company Law Tribunal, the company said.

After 270 days, if resolution plan is not found, a company would go to liquidation as per the Insolvency and Bankruptcy code.