Elder Pharma to repay creditors, investors by selling assets

The company says it has been going through tough liquidity situation but is on the path of recovery and has substantial asset base to cover all its liabilities.

Elder Pharmaceuticals Ltd. reportedly plans to repay its creditors and fixed deposit investors by raising funds through a combination of debt, equity and asset sales.

The company intends to sell its stake in its subsidiaries in the UK and Bulgaria, reports a financial daily.

The company says it has been going through tough liquidity situation but is on the path of recovery and has substantial asset base to cover all its liabilities.

Earlier this month, the Bombay High Court directed Elder Pharma to repay INR 155 crore to small investors who had invested in the company’s fixed deposit in January.

The company also has to pay a few debenture holders INR 263 crore, according to the daily.

Elder Pharma also faces 24 winding up petition, including one from Tata Financials, reports the paper.