Future Of Bankrupt Orchid In Doubt

Indian Appeal Body Rejects Dhanuka Rescue Of Orchid

An Indian appellate tribunal has scuttled the acquisition of bankrupt Orchid Pharma by Dhanuka Labs, ruling that the deal contravened the country’s bankruptcy code.

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Cutting off Dhanuka’s rescue bid poses an existential threat to Orchid • Source: Shutterstock

The future of India’s bankrupt Orchid Pharma has been thrown up in the air once again. An appellate body has rejected Dhanuka Laboratories’ offer to acquire Orchid and put the debt-laden company back on the road to recovery. It is the second time a rescue bid for Orchid has collapsed and the news has sent the firm’s share price tumbling.

In late June, The National Company Law Tribunal approved an insolvency recovery plan submitted by privately-held Dhanuka to acquire Orchid, which is headquartered in the southern city of Chennai. The tribunal rejected rival offers from Accord Life Spec and Covalent Laboratories

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