This is from Feb 06. What was the certain collateral that xkem had to provide to get the royalties dropped when they accelerated the loan payments? Did Alembic at the time think it was a better deal to give up percentages on future exports just to get the payment sooner. Seems like a bad deal for them on the surface. Can someone enlighten me? TIA
The Chairman and Chief Executive Officer of both Xechem International and its Nigerian subsidiary, Dr. Ramesh C. Pandey, said’For quite some time, we have been looking for a way to restructure the Alembic indebtedness in a manner that would allow us reclaim the equity stake in our Nigerian subsidiary and the royalty stream that was part of the package of rights transferred to Alembic at the time of the original loan”.
Dr. Pandey further stated that, “ Alembic expressed a willingness to accommodate our desire as long as the repayment schedule was improved upon and certain collateral was posted. In the deal that was agreed to, Alembic got what it wanted, which was improved repayment terms and a measure of collateral, and we have again taken full control of our Nigerian subsidiary with the termination of broad rights and understandings that previously belonged to Alembic. I believe this truly was a win-win situation for both parties”.
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