Bombay HC stays winding up order: Wockhardt

Drug firm Wockhardt today said a division bench of the Bombay High Court has granted ad-interim relief to it by staying the admission of a winding up petition filed against it by its FCCB holders.

The company has also agreed to deposit in court Rs 115 crore by May 3, 2011, as per direction of the high court, Wockhardt said in a filing to the Bombay Stock Exchange.

On March 11, the Bombay High Court had admitted a winding-up petition filed against the company by a group of three Foreign Currency Convertible Bond (FCCB) holders, led by US-based fund QVT.

The FCCB holders were seeking recovery of their investments through sale of Wockhardt's assets.

The firm had undertaken a corporate restructure programme to recast its over Rs 3,700 crore debt in 2009.

Under the Corporate Debt Restructuring (CDR) programme, Wockhardt had offered to settle repayment of $110 million FCCB, issued by it in 2004, at a discount.

A group of bondholders led by QVT, which had subscribed to 41% of the FCCB, had refused to take the offer.

Shares of Wockhardt today closed at Rs 331.65 on the BSE, up 4.64% from its previous close.