Drug-maker Wockhardt can breathe a little easy now, as a major irritant is out in its Rs 1,600-crore deal with food-major Danone — the buyer of its nutrition business.
Lehman Brothers has withdrawn a wind-up petition it had filed in the Bombay High Court against Wockhardt. This follows an out-of-court settlement between Wockhardt EU and Lehman, a source familiar with the development told Business Line .
The Lehman petition had cast a shadow on Wockhardt's sale of its nutrition business to Danone, as the buyer had wanted a clean deal. Wockhardt had formalised its agreement with Danone in August 2011, and had expected to complete the deal by March 2012.
Lehman was seeking a payment of $24 million from Wockhardt Ltd for a derivative transaction between Wockhardt EU and Lehman where the Indian parent company had stood a $15 million guarantee, the source said.
Details of the out of court settlement between Lehman and Wockhardt EU were not available.
Bond issue
Meanwhile, Wockhardt had also filed a consent decree in the Bombay HC, agreeing to pay the FCCB-holders (or foreign currency convertible bond-holders) outstanding amounts and interest on the reducing balance, by August 2012.
Saddled with over Rs 3,700 crore, Wockhardt had defaulted on its $110 million FCCBs in late 2009.
Wockhardt had initially deposited Rs 115 crore with the Court in April last year. Subsequently, it undertook to deposit Rs 85 crore by December and Rs 30 crore by January 2012.
The fourth and fifth tranches of Rs 100 crore by March and Rs 50 crore by June remain, with the balance payable by August 31, the source said.
Though not linked to the divestment of the nutrition business, the Bombay HC cleared the Danone deal, provided bond-holders were paid.
Wockhardt shares closed at Rs 480 on the BSE, up close to 2 per cent, on Friday.