Elder Pharma Says Committed to Repay all Creditors

Mumbai: Elder Pharmaceuticals on Thursday said it is committed to repaying all its creditors and fixed deposit holders and are on a revival path with substantial growth in its business operations in the recent past. "We are committed to repaying all our creditors and FD holders and are on the revival path with substantial growth in our business operations," Elder Pharmaceuticals managing director Alok Saxena said in a statement. The statement comes after media reports earlier this week some of the FD deposit-holders had alleged money laundering by the company. The depositors said that they did not get anything from a part of its OTC business sale Torrent Pharma two years ago for Rs 2,000 crore. Following the report in the city-based eveninger, the company has filed a Rs 500-crore defamation suit against the paper. Denying allegations of money laundering, Elder has informed the exchanges that it has sought Rs 500 crore in damages from the paper. The company has defaulted in making payments fixed deposits of Rs 70.89 crore and interest thereon of Rs 11.95 crore payable up to March 2015. It has also defaulted in repayment of non-convertible debentures holders and aggregate sum of Rs 84.72 crore and Rs 50.99 croe are due for payment towards principal and interest thereon respectively as on March 2015. Elder, a major player in the anti-infectives, multi-vitamins, cardiology and skincare segments apart from the OTC segment, and has over Rs 100 crore fixed deposits to be repaid to FD holders. Despite operating a sound and financially stable businesses, Elder has been grappling with cash flow issues resulting in delayed payments. The entire issue pertaining to fixed deposit holders is sub-judice and the company has requested permission to liquidate its assets to pay all its creditors, including FD holders, he said. Elder is an asset-rich company with six ultra-modern manufacturing units and a corporate house in the city worth crores of rupees. The company has informed the Bombay High Court that every endeavour will be made to repay all the dues. In recent past it has cleared some of the pending statutory payments like TDS, provident funds, ESIC, the Maharashtra Labour Welfare Fund etc worth Rs 26 crore. It can be noted that Elder had sold 30 of its brands to Torrent for Rs 2,000 crore to reduce debt two years ago, and the proceeds from this was disbursed through the High Court to repay the secured creditors.

Elder Pharma Says Committed to Repay all Creditors

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