Exchanges informed of stake sale in UK, Bulgaria subsidiaries
Plagued by ‘tough cash flow situations’, which led to mounting debts and subsequent legal action by groups of creditors, the Elder Pharmaceuticals management today re-committed to repaying all its creditors (secured and unsecured) by raising funds through a combination of debt, equity and asset sale.
According to a company statement, the exchanges have already been informed regarding the intention to sell stakes in the Elder Pharma subsidiaries in UK and Bulgaria. The company maintains that though it has been going through ‘tough cash flow situations’, it is ‘on the path of recovery and has substantial asset base to cover all its liabilities.’
The release attributed the delay in the company’s recovery or plans to sell assets to the ‘‘due-diligence’ process by lenders/investors’, ‘number of litigations- many of which are motivated’ and a slow real estate market, as a result of which the company has not been able to sell off its non- core assets quickly or at the right price.’
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