The US-based investor fund QVT Advisors today threatened to block debt-ridden Wockhardt's Rs 620-crore sale of nutrition business to Abott, intensifying the fight with the promoters of the drugmaker over a corporate debt restructuring programme.
"We are opposed to the sale of assets of Wockhardt as the promoters are not ready for any dilution of their stake," a QVT spokesperson in India said.
He said Wockhardt had to inform the Bombay High Court before selling the nutrition business and as soon as it informs the court, a group of bond holders led by QVT would file a petition to stop the sale.
Last year Wockhardt had signed a deal to sell its nutrition business, including the Farex brand, to Abott for Rs 620 crore. In separate deal, Wockhardt sold its animal care business to Pfizer for Rs 350 crore.
While deal for the sale of animal care business has been sealed, the nutrition business sales is yet to be completed.
The QVT spokesperson said Wockhardt even took a non-competing fee for selling its animal healthcare business.
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The investor fund, however, has offered Wockhardt a new restructuring programme, under which the promoters will be required to issue fresh foreign currency convertible bonds (FCCBs) to cover for the current outstanding of $140 million, from a previous FCCB issued in 2004.
Earlier, QVT had filed a winding up petition in the Bombay High Court after the drug maker defalted in repaying the FCCB issued in 2004 to the investor fund. The court will hear the matter on January 29.