Elder Pharmaceuticals in crisis, assures lenders

It also claimed it enjoys a strong goodwill in market which is enabling it to revive and increase business operations slowly but steadily. “Once the company’s profitable business model reaches its earlier stage it will have sufficient cash flows to take care of various financial needs,” the pharma major said in a release to the stock exchange.

The company which is a major player in the anti-infectives, multi- vitamins, cardiology and skincare segments said in the release. “We are committed to repaying all our secured and unsecured creditors by raising funds through a combination of debt, equity and asset sale. We are going through tough cash flow situations but are on the path of recovery and have a substantial asset base to cover all liabilities,” the company said in the statement.

It said a combination of market situations had caused some of the problems. It faced a number of litigations many of which were are motivated and further delayed the company’s recovery or plans to sell its assets.

The slow real esate market added to limiting its ability to sell its non-core assets quickly and at the right price. But the efforts continue to realise the best value for these assets, it said. Raising funds from the markets was not an option at this time, it said, as it was a time consuming process as the ‘due-diligence’ by investors takes up many months.