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Bondholders can move UK court against Wockhardt: Bombay HC

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BS Reporter Mumbai
Last Updated : Jan 21 2013 | 2:06 AM IST

The high court here on Tuesday ruled there was no injunction against the bondholders moving a UK court against the foreign currency convertible bond (FCCB) default of pharma major Wockhardt.

The court has asked bondholders to serve notice to Woch-ardt, if they move the UK court. Wock-hardt has been given the option of filing a fresh suit upon receiving a notice.

Wockhardt shares on Tuesday closed at Rs 379.10, up by 1.8 per cent on the Bombay Stock Exchange.

On October 11, the high court had directed the debt-ridden pharma company to clear payments to FCCB holders by August 31, 2012. However, on October 19, bondholders approached a UK court against Wockhardt, with a similar petition against the FCCB default. On December 8, Wockhardt challenged the bondholders' move in the high court.

The court asked the company to pay Rs 315 crore to the FCCB bondholders, including US hedge fund QVT Financial LP and Sun Pharma-ceuticals. Under the new agreement, Wock-hardt had to pay Rs 85 crore by December, Rs 30 crore by January and Rs 100 crore by March 31. The remaining amount was to be paid before August 31, 2012. The company owes Rs 421 crore to bond holders, including interest and redemption premium.

The company had defaulted on the re-payment of its $110-million FCCBs in 2009. Although the company had reached a settlement with a few FCCB holders, approximately $60 million will have to be paid to the remaining holders.

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First Published: Feb 01 2012 | 12:01 AM IST

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