Mumbai: NCLT Approves ₹577.24-Crore Resolution Plan For Arch Pharmalabs Revival

Mumbai, October 22: The National Company Law Tribunal (NCLT) has given its approval for a ₹577.24-crore resolution plan for Mumbai-based pharmaceutical company Arch Pharmalabs Ltd, submitted by Ashish Kumar's consortium and MetaX Life Sciences Ltd. The approval comes after the NCLT Bench-II, comprising judicial member Ashish Kalia and technical member Anil Raj Chellan, verified that the plan adhered to all statutory requirements and contained provisions for efficient execution. The Resolution Plan Total Amount

Discharge Amount: The resolution plan's total cost is Rs. 577,24,30,812, which includes a discharge amount of Rs. 567,49,13,582 and CIRP costs of Rs. 9,75,17,230. The discharge amount excludes the payment towards CIRP costs, which will be made by the SRA at actuals. Regulatory fees to the Insolvency and Bankruptcy Board of India (IBBI) under Regulation 31A of the CIRP regulations (for the fees not covered by the CIRP Costs) are also payable by the SRA, with these payments forming part of the CIRP Costs. Payment Schedule

The resolution applicants have outlined a payment schedule, with the intention of finalizing the payments within 75 days of the plan's approval. The plan also covers payments to operational creditors, employees, and statutory obligations. Arch Pharmalabs' Financial Background

Arch Pharmalabs, incorporated in 1993, is a pharmaceutical company that manufactures active pharmaceutical ingredients (APIs) and operates six plants across the country. The company also owns properties in Maharashtra and Gujarat. Equity Injection Planned

The resolution plan allocates Rs. 2 crore for the full and final settlement of workmen's and employees' claims, covering provident fund, employee state insurance, and other government dues. Additionally, it provides for a ₹50 crore infusion of fresh equity shares into the company.