Drug maker Wockhardt has said that the winding up petition filed by the trustees to the foreign currency convertible bonds before the Bombay High Court has been withdrawn.

The company had been hauled to Court after it defaulted on repaying its $110-million FCCB (foreign currency convertible bonds), in October 2009. The petition was filed by BNY Corporate Trustee Services Ltd (the Bank of New York Mellon) on behalf of bondholders, including Sun Pharma Global and QVT.

Wockhardt had been on a down-hill path, saddled with debt of over Rs 3,800-crore. It approached the debt restructuring cell through ICICI Bank in March 2009.

The company has since turned the corner, with Wockhardt Chairman Habil Khorakiwala saying last month that the company was in the process of exiting the bank-driven process of debt restructuring. Wockhardt has also recently closed a Rs 1,600-crore deal selling its nutrition business to Danone. These funds too, would go towards repayment of debt. Wockhardt has over the last few years exited non-core businesses as part of the process to regain its financial health.

Wockhardt shares closed at Rs 1,195 on Thursday, down four per cent on the BSE.

(This article was published on September 20, 2012)
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