Synovics' shareholder pushes for reconstituted board

By Lisa Kerner

Charlotte, N.C., March 7 - Synovics Pharmaceuticals, Inc. investor NalinKant Amratlal Rathod believes the company is not in a position to service or repay its outstanding debt, including the convertible note held by his company, Asia Pacific Investment Holdings, Ltd.

The15-year investor, who owns 2,603,485 shares, or 9.2%, of Synovics' outstanding shares, has "lost faith in the existing management" going forward, according to a letter to Synovics' board included in a schedule 13D filing with the Securities and Exchange Commission.

Rathod, in a Feb. 23 SEC filing, considered nominating an alternative slate of directors, including himself, for election to the Phoenix-based specialty pharmaceutical company's board.

In the latest filing, Rathod requested the board take the following specific actions:

• Remove the recently adopted poison pill and bylaw changes made in 2006;

• Prepare and deliver to Rathod a current balance sheet showing all liabilities;

• See that the existing board members resign, expand the board to seven directors and elect four individuals designated by Rathod; and

• Negotiate a consulting agreement with Ronald Lane to assist with transition matters.

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