Troubled drug firm Elder Pharmaceuticals today said it is going through a ‘tough cash flow situations’ but has a substantial asset base to cover all its liabilities.

The company, which has been refused extension by the Bombay High Court for repayment of money to the tune of Rs 155 crore to various investors, said it is “committed to repaying” all its creditors by raising funds through a combination of debt, equity and asset sale.

“The company has been going through tough cash flow situations but is on the path of recovery and has a substantial asset base to cover all its liabilities,” Elder Pharmaceuticals said in a BSE filing.

The Mumbai—based firm further said that it has already shared its intentions to offload its stake in the two step down subsidiaries in the UK and Bulgaria.

“Unfortunately, due to various legal issues the company has been facing as well as the current negative real estate market, the company has not been able to sell off its non—core assets within the stipulated time and at the right price,” it added.

But the company will continue its efforts to realise the best value for the non—core assets, it said.

“The company has a viable and profitable business model and is confident of running a successful business enterprise in the long run. The company and its promoters remain committed to doing their best to repay all the liabilities and to turn around the business,” it added.

Elder Pharmaceuticals also said “many litigations have been filed against it intentionally to malign and damage the image of the company.”

Facing a severe financial crunch, Elder Pharma is in the process of restructuring as a whole and is in advanced stage of discussions with prospective lenders.

Shares of Elder Pharma today ended at Rs 104.20 on the BSE.

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