The company is seeking to reschedule the repayment period for these loans as cash flow mismatch on the books have heightened.
Some of the top lenders include State Bank of India, Union Bank and IDBI Bank, among a few private sector banks. Sources told NDTV Profit that about Rs 200 crore worth of loans to Union Bank have already turned into non-performing loans (NPAs) due to the company's inability to repay. The amount was overdue last quarter.
However, these loans are likely to get upgraded in the coming quarters as bankers extend some leeway to the struggling pharma company, said two bankers .
The company recently announced exit of its 50:50 manufacturing joint venture (JV) with North China Pharma, selling its 50 per cent stake to its partner for $13.9 million.
Orchid had originally invested $5 million to set up the enterprise. The JV operated a cephalosporin API manufacturing facility in Shijiazhuang, China.
Orchid is also in advanced talks with Hospira to sell sell its penicillin and penem API businesses and API facility in Maharashtra along with associated process R&D facility in Chennai to Hospira for an amount close to Rs 1000-1100 crore. The sale with help the company cut its debt burden and stabilise working capital issues.
Mr. K Raghavendra Rao, CMD, Orchid Chemicals and Pharmaceuticals, confirmed they were in talks with various domestic lenders to reschedule repayment period of loans as and when they fall due.
“We have about Rs 2,000 crore debt in our books. We have already repaid FCCB loans worth Rs 820 crore earlier in February this year. We expect the sale to Hospira to be completed by the end of this month or latest by the end of this fiscal year. With that cash, we can almost halve our current debt burden and sort out working capital issues as well,” he added.