Will get approvals to restructure debt soon: Ankur Drugs

Lower sales in Q3 have come in as a major jolt to Mumbai-based pharma firm Ankur Drugs as it reported a net loss of Rs 20 crore as compared to Rs 28.14 crore in the same period last year. Faced with liquidity concerns, the company plans to restructure its existing debt.

In an interview with CNBC-TV18, Purnandu Jain, CMD, Ankur Drugs outlined the contours of the company's corporate debt restructuring plan. Below is a verbatim transcript. Also watch the accompanying video. Q: Can you give us the contours of the CDR that you are negotiating with banks? What is the total amount of debt that you want restructured? A: The total debt including working capital is about Rs 775 crore. We are asking for restructuring. The highlight is we have not asked for any waiver of any unpaid interest or paid interest or installments rolling back. We are just asking two years moratorium and thereafter eight years repayment of the loans. In fact what has happened is that we have ended up paying almost Rs 150 crore out of Rs 400 crore sanctioned term loans before the project got completed. That is why we have put into little liquidity crunch, which started affecting our working. So the last quarter numbers are related to that to tide over this problem, we have switched over a part of significant capacity to job work. Therefore the topline has gone down. But capacity utilization remains almost the same and for new projects which have been completely recently we are looking forward for a better capacity utilization in quarters to come so in long-term the growth story and the story of Ankur remains intact. There is a short-term block, which we have tiding over. Today itself CDR has admitted the case and we hope to get the approvals in the next one and a half to two months. Q: What was the interest outgo or will be the interest outgo for FY11? A: FY11 interest outgo would be to the tune of Rs 100 crore but it is being funded in