Orchid Chemicals & Pharmaceuticals has accepted the Letter of Approval (LOA) dated Mar. 10, 2014 issued by Corporate Debt Restructuring Empowered Group (CDR EG) approving the Corporate Debt Restructuring proposal submitted by the company.

''The approval of the corporate debt restructuring package (CDR) would facilitate completion of the Penicillin and Carbapenem API business transfer to Hospira and also bring in working capital availability from the deal proceeds besides deleveraging the debt profile. With this company would be on a better platform to achieve improved performance going forward,'' said K Raghavendra Rao, chairman and MD, Orchid Chemicals & Pharmaceuticals.

Shares of the company gained Rs 4.85, or 9.95%, to trade at Rs 53.60. The total volume of shares traded was 72,244 at the BSE (9.25 a.m., Tuesday).