Morepen Laboratories restructuring package admitted in CDR

Mumbai, May 05 (UNI) Morepen Laboratories Ltd today announced that its Corporate Debt Restructuring (CDR) proposal of Rs 7,500 million has been formally admitted for consideration by the Empowered Group of the CDR.

Informing the BSE, the company said the restructuring proposal envisages one time settlement (OTS) with majority of lenders after induction of fresh capital by the strategic investors.

The fresh money will come by a combination of Debt and Equity/FCCB.

The restructuring proposal also provides one time settlement with FD holders subject to necessary approvals and the funding of equisite working capital and capital expenditure required by the company.

The company is expected to complete the above process in the course of next 3-4 months and regain its market share.

During the fiscal year 2005-06, the company has consolidated its business activities and has recorded a growth of 34 per cent in gross revenues amounting to Rs 133.61 crore.

The exports forming 62 per cent of the total sales have grown by 34 per cent. Similarly formulations, contract manufacturing, diagnostics and Doctor Morepen's range of products have also registered handsome growth.

The EBIDTA(earnings before interest depreciation tax allowance) margins have increased from 3 to 13 per cent on account of various cost cutting measures adopted by the company, which is expecting a robust growth in its revenues during the financial year 2006-2007.

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