Wockhardt Ltd has received ad-interim relief by staying the admission of the winding up Petition filed by the Trustees to the Foreign Currency Convertible Bonds, issued by the company from Division bench of the Bombay High Court. In the meantime the company has agreed to deposit in court Rs. 115 crore by May 03, 2011, as per direction of the Bombay High Court. The Wockhardt scrip opened at Rs. 318 and went up to intra-day high level at Rs. 341.70 as against yesterday's closing of Rs. 316.95 on BSE.
Wockhardt had failed conclude arrangement to pay its FCCB holders $110 million as per terms and went into a corporate debt restructuring process. The petitioner, QVT Financial Lp, a Singapore based hedge fund and an overseas unit of Sun Pharmaceutical Industries Ltd, holding FCCBs worth US$ 42 million, had filed case against Wockhardt in October 2010. Sun Pharma is holding FCCBs worth $20 million issued by Wockhardt in 2004.
To reduce the debt burden, Wockhardt divested animal health care division to Vetoquinol, France and divested the business of Esparma GmbH to Mova GmbH. As at the end of March 2010 (15 months period), it's total borrowings touched to Rs. 4,018 crore and it provided Rs. 342 crore for financial cost.