Reportedly, American Express bank has pulled out of a consortium
working out a financial restructring of Core Healthcare and has
filed a winding up petition against it. Core's ambitious expansion
plans togo into blood bags, syringes and analysis equipment has run
into time and cost overrun. Core has paid a part of the rupees
30 crore it had taken from American Express and its loans total
Rs 635 crore. A consortium of lenders have been formed to work out
a package that involves conversion of Rs 55 crore outstanding
interest into another loan and extension of a moratorium on some
payment to June 1999. The company has dropped its 100-crore
30-MW captive power plant and its formulation unit near Ahmedabad.
The Gujarat government is giving it a direct feeder 66 kVA line.
Core has announced plans to dispsose of its Ahmedabad formulation
plant including land, building and manufacturing and five of its
branded products in the analysis, amoebic, cardio-vascular,
antihistamine and antibiotics groups. The unit having gross block
of Rs 11 crore contributed Rs 26 crore to Core's turnover of Rs
244 crore and, reportedly, the price is put at Rs 20 crore.
Buyer of Merind Will Have to Buy Tata Pharma Too
The acquision of Merind, controlled by the Tatas, will have a rider
attached to it. That is, its acquirer will also have to acquire 26 per
cent of Tata Pharma, a company in which the former already hold
74 per cent, thereby acquiring the entire company. At present the
above-mentioned 26 per cent of Tata Pharma is held by Lakme, which
has since then been taken over by HIndustan Lever. The deal is
mandator according to an agreement between Merind and Lakme signed
in 1995-96. Tata Pharma, initially a division of Lakme, was made
into a separate company when Lakme was taken over, with merind and
Lakme holding 74 per cent and 26 per cent respectively. Tata
Pharma was affected by Chinese dumping of its main product
Chloriquine Phosphate, and has a turnover of Rs 45 crore and a
loss of Rs 2.6 crore.
Ranbaxy Laboratories' US arm and Eki Lilly of the USA are restructuring
their equal joint venture for marketing the latter's product in the
US. Eli Lilly agreed to transfer a group of genetic products to
Ranbasy which will be marketed under the Ranbaxy label by Ranbaxy
Pharmaceuticals Inc. in the US. Ranbaxy will have to pay a transfer
price for these products enabling them to gain a foot hold in the
US market. However, joint research and development and manufacturing
plans have been shelved as being unprofitable.
Ciba Speciality formed by the demerger of the chemicals division of
Hindustan Ciba Geigy; and Novartis, formed by the merger of Hindustan
Ciba Geigy's life sciences division and Sandoz; are holding talks
to separate their facilities at Goregaon in Mumbai and at Goa.
A part of the facility at Goregaon (80 per cent) will be used for
real estate development, the rest being shared by the two. At the
Goa facility, the two companies are to decide whether Ciba Specialities'
antioxidant unit is to remain there as a separate unit or to let
Novartis toll manufacture it for Ciba, using the latter's raw
material, and the former's manpower.
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