Drug-maker Wockhardt has been asked by the Bombay High Court to bring in the over Rs 350 crore it owes its creditors. This is irrespective of its asset sale.
The debt-saddled company is facing a wind-up petition filed by bondholders and creditors unhappy with Wockhardt for defaulting on the repayment of its $110-million foreign currency convertible bonds (FCCB), in 2009.
The petition was filed by bond trustee BNY Corporate Trustee Services Ltd (the Bank of New York Mellon) on behalf of bondholders, including Sun Pharma Global and QVT. And during the course of legal proceedings, Wockhardt had been restrained from selling assets without informing the court.
Danone deal
Early last month, Wockhardt had signed an estimated Rs 1,600-crore deal with Danone to sell its nutrition business to the multinational company. But the deal still requires the seal of approval from the court.
Of the Rs 1,600 crore, only about Rs 640 crore is with Wockhardt Ltd. An equal amount is with Wockhardt EU and about Rs 320 crore is with Carol Info Services, a legal source familiar with the development told Business Line .
The company has in the past deposited with the Bombay High Court Rs 115 crore, as directed by the court. And this time around, the court has said, asset sale notwithstanding – the company would have to bring in the liability amount within a time-frame or face liquidation proceedings, the source added.
The court was of the view that proceeds of the sale be distributed to bond-holders, an idea that the secured creditors, including ICICI was not comfortable with, the source said.
The trustee and foreign bondholders are being represented by DSK Legal and Juris Corp, respectively, while Wockhardt is being handled by Majmudar and Co. The case comes up for its next hearing on September 21.