FCCB holders get time to respond to Wockhardt anti-suit injunction

The high court here on Friday granted foreign currency convertible bond (FCCB) holders more time to respond to an anti-suit injunction filed by pharma major Wockhardt.

The company had filed an injunction against trustees, representing the bondholders, on December 8. Wockhardt shares on Friday went down by 7.28 per cent or Rs 25.90 to close at Rs 330.05 on the Bombay Stock Exchange.

The company had challenged the trustees' move to approach another jurisdiction in the case since the same case had been filed at the Bombay court. The trustees had filed a similar suit related to FCCB default in a UK court in October.

Hearing Wockhardt's petition, the court restrained the trustees from further proceedings in the UK.

On October 11, the high court had directed the debt-ridden pharma company to clear payments of Rs 315 crore to FCCB holders, including US hedge fund QVT Financial LP and Sun Pharmaceuticals, by August 31, 2012. However, on October 19, bondholders approached the UK court against Wockhardt with a similar petition against the FCCB default. On December 8, Wockhardt challenged the bondholders' move in the high court.

On Friday, the high court gave a Rs 115-crore cheque to the bondholders, which Wockhardt had deposited with it earlier as security.

The company had defaulted on the re-payment of its $110-million FCCBs in 2009. Under the new agreement, Wockhardt will pay Rs 85 crore by December, Rs 30 crore by January, Rs 100 crore by March 31, and the remaining amount before August.

The company owes Rs 421 crore to bond holders, including interest and redemption premium.

Hearing of another petition filed by Lehman Brothers against Wockhardt has been adjourned till January 13.