Nectar Lifesciences board opt for one-time debt restructuring

Chandigarh-based Nectar Lifesciences Ltd (NLL) on Saturday said its Board of Directors have decided to opt for one-time restructuring of its debt.

“The Board of Directors in their meeting held on November 27, 2020 have ...authorised the officers of the company to discuss and/ or finalize the one-time restructuring plan with the banks/ financial institutions and/or to sign any agreement, document application or paper as is required to accomplish the said one-time restructuring,” the company said in a regulatory filing.

In its filing, NLL referred to the Reserve Bank India’s circular permitting one-time restructuring for the accounts which were standard as on March 01, 2020.

The company’s total borrowings, including term loans and working capital limits, from Banks aggregated about Rs 741 crore as on March-end 2020, as per its annual report.

NLL manufactures Cephalosporin intermediates, APIs (Active Pharmaceutical Ingredients) and Formulations to meet the diverse requirements of its customer base in India and over 90 countries worldwide, the report said.

On its liquidity position, the company, in its annual report for FY20, said there was a delay in realizations from debtors due to lockdowns, both domestic and overseas & thereafter unlock, it may became better.

Further, the material remained struck up at ports therefore working capital got locked therein.

“To overcome these issues of elongated working capital cycle, the banks have provided Covid related short term loans/ facilities.The company has opted for Moratorium 1 and Moratorium 2 benefits as announced by the Government/ Reserve Bank of India,” the report said.