* Cuts 52 percent of its workforce, or 350 jobs

* Caraco: JPMorgan Chase says line of credit not available

* Caraco shares down 4 pct (Adds background)

July 6 (Reuters) - Caraco Pharmaceutical Laboratories Ltd (CPD.A: Quote, Profile, Research) said it would slash more than half its workforce to align its expenses with the current halt in production, following U.S. health regulators' recent seizure of the company's medicines on repeated manufacturing violations.

The generic drugmaker, which said it would cut 350 jobs, added that JPMorgan Chase Bank had informed the company that its $10 million line of credit was not available to be drawn down upon until the regulatory matter was resolved.

However, this will not have any material impact on the company's current financial position, Caraco said. The company had 667 full-time and contract employees at March 31.

The company said the timing of the resumption of manufacturing operations depends on the discussions with the U.S. Food and Drug Administration, and should have no effect on distributed product sales in the United States.

Caraco, which received a warning letter from the FDA last October, is the latest in a growing group of generic drugmakers who have been pulled up for manufacturing problems.

Late last month, the FDA seized drugs made at the company's Michigan facilities in Detroit, Farmington Hills, and Wixom, including generic versions of heart, pain and psychiatric medicines.