The Chennai Bench of the National Company Law Tribunal (NCLT) has directed Ingen Capital Group LCC, which was selected to take over Orchid Pharma Ltd, to deposit 334 crore rupees, which is one-third of the amount due to lenders, within a matter of one week. In August 2017, the NCLT ordered insolvency proceedings against orchid in a case filed by the Lakshmi Vilas Bank. The company owed 3,200 crore rupees to a consortium of 24 banks. The company figured in the second RBI list that had the names of 28 large defaulters. In September 2018, the committee of creditors approved the resolution plan from Ingen Capital for the revival of Orchid Pharma. As a part of the resolution plan, Ingen agreed to bring 1,060 crore rupees as upfront payment within 30 days from the date of the approval of the plan, which is September 17, 2018. However, the NCLT noted that from the submission made by the Resolution Professional and banks, till date, not even a single rupee had come from Ingen. The Bench said that if the company were to be saved from falling into liquidation, it was essential on the part of Ingen to deposit 334 crore rupees, which was only a third of the amount due. The amount would be kept in an escrow account as the security of performance of the obligation by Ingen and would be adjusted against the final amount of 1,060 crore rupees. If the amount was not deposited, the Resolution Professional was at liberty to take up further action.
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