Morepen Laboratories Limited today announced that its Corporate Debt Restructuring (CDR) proposal of Rs.750 crores has been formally admitted for consideration by the Empowered Group of the CDR.

The restructuring proposal envisages one time settlement (OTS) with majority of lenders after induction of fresh capital by the Strategic investors. The fresh money will come by a combination of Debt and Equity/FCCB. The restructuring proposal also provides one time settlement with FD holders subject to necessary approvals and the funding of the requisite working capital and capital expenditure required by the Company. The Company is expected to complete the above process in the course of next 3-4 months and regain its market share.

During the fiscal year 2005-06, the company has consolidated its business activities and has recorded a growth of 34% in gross revenues amounting to Rs 133.61 Crores.

The exports forming 62% of the total sales have grown by 34%. Similarly Formulations, contract manufacturing, diagnostics and Doctor Morepen‘s range of products have also registered handsome growth.

The EBIDTA margins have increased from 3% to 13% on account of various cost cutting measures adopted by the company. Morepen is expecting a robust growth in its revenues during the financial year 2006-2007.