NCLT asks Ingen to deposit ₹334 crore

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, which is one-third of the amount due to lenders, within five days 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 to a consortium of 24 banks. As a part of the resolution plan, Ingen agreed to bring ₹1,060 crore as upfront payment within 30 days from the date of the approval of 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, which was one-third of the amount due to lenders, as sought by the Resolution Professional, within five days from the date of its order on November 2. The amount would be kept in an escrow account as security of performance of obligations by Ingen and would be adjusted against the final amount of ₹1,060 crore, the NCLT said.

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