The Company Law Board on Thursday approved the fixed deposits repayment schedule plan of Morepen Laboratories Ltd.
The company has fixed deposits of Rs 162 crore (Rs 1.62 billion) received through 80,000 deposit holders.
Morepen had submitted the plan to CLB as a part of a debt restructuring plan to bridge a mismatch of funds.
According to the approved rescheduling, preference would be given to small investors.
The company has repaid deposits of over Rs 10 crore (Rs 100 million) during the current financial year and has to pay an additional Rs 17 crore (Rs 170 million) as per the rescheduling plan, the statement added.
The order says that depositors up to Rs 5,000 shall be paid in full within one year from the date of maturity. All deposits of Rs 5,001-20,000 shall be paid within four years from the date of maturity at 20 per cent each in first, second and the third year and the balance 40 per cent in fourth year.
The deposits of Rs 20,001-50,000 shall be paid in four years of maturity with 15 per cent in the first year, 20 per cent in second year, 25 per cent in third year and the balance 40 per cent in fourth year, it says.
All deposits of Rs 50,001 and above shall also be paid completely within four years from the date of maturity at 10 per cent in first year, 15 per cent in second year, 35 per cent in third year and balance 40 per cent in the fourth year.
The CLB has also proposed additional amount of Rs one crore (Rs 10 million) per year for hardship cases like senior citizens, medical and marriage in addition to the amount needed for repayments as per schedule, a company statement said.
The interest shall be payable at the contract rate till the date of maturity and at the rate of 7 per cent thereafter. The approved scheme will be applicable to all fixed deposit holders of the company all over India, whether the individual FD's are overdue or yet to mature.
