Elder Pharma to repay creditors by selling assets

Date posted: Saturday 31 October 2015

Troubled drug firm Elder Pharmaceuticals plans to repay its creditors and investors by raising funds through a combination of debt, equity and asset sale. The company intends to sell its stake in its subsidiaries in the UK and Bulgaria. Earlier this month, the Bombay High Court directed the company repay INR 155 crore to small investors who had invested in the company’s fixed deposit in January. The company has to also pay a bunch of debenture holders INR 263 crore. The ailing company also faces 24 winding up petition, including one by Tata Financials. The company was also restrained from creating any third party rights or to sell off its assets except in the natural course of business, without permission from the Court.

(The Hindu)