ELDER PHARMA REAFFIRMS COMMITMENT TO CLEAR ALL DUES BY RAISING FUNDS THROUGH ASSET SALE OR DEBT OR ISSUE OF EQUITY

     

  Revival in business operations likely to relieve Cash flow issues in the long term

Elder Pharmaceuticals Ltd (NSE: ELDERPHARM) is committed to repaying all its creditors (secured and unsecured) by raising funds through a combination of debt, equity and asset sale. The company has already informed the exchanges regarding its intention of selling its stake in its subsidiaries in UK and Bulgaria. The company has been going through tough cash flow situations but is on the path of recovery and has substantial asset base to cover all its liabilities. Raising funds is a time consuming process and cannot be done overnight as the ‘due-diligence’ by lenders/investors takes up many months at times.

However, in recent times the company has been faced with a number of litigation – many of which are motivated – which are in effect further delaying the company’s recovery or plans to sell assets. Due to these numerous legal issues – coupled with a slow real estate market – the company has not been able to sell off its non- core assets quickly or at the right price. But the efforts continue to realize the best value for the non-core assets.

The company has also been facing a lot of negative publicity in the media, most of which is completely false, derogatory and defamatory and liable for libel. In spite of the motivated campaign to systematically tarnish its image the company enjoys a strong goodwill in market which is enabling it to revive and increase its 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 its various financial needs. The only thing coming in the way are the multitude cases filed against the company.

The company and its promoters remain committed to doing their best to repay all the liabilities and to turn around the business. This commitment is not only to the investors, creditors and depositors, but also to the more than 1000 families who still believe in the Elder dream.