Troubled pharma company Wockhardt got a reprieve on Wednesday, with the Bombay High Court (HC) staying a winding up order against the company.
On March 11, the HC had admitted a winding up petition against Wockhardt, filed by the company?s foreign currency convertible bond (FCCB) holders. Wockhardt had appealed against the order. The next hearing on the case will now happen on May 4.
In a notice to the exchanges, Wockhardt said a division bench of the high court ?granted 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.? The company added that it will also deposit in court R115 crore by May 3, as directed by the high court.
Responding to the news, shares of Wockhardt rose 4.6% on the BSE to close at R331.65 on Wednesday.
Saddled with a debt of about R3,700 crore, Wockhardt had defaulted on its FCCB repayment and gone in for a corporate debt restructuring (CDR) process last year.
Wockhardt?s FCCB holders are seeking to recover their investments through a sale of the troubled pharma company’s assets.
The FCCB holders include Singapore-based hedge fund QVT Financial LP and an overseas unit of Sun Pharmaceutical industries. These bondholders had earlier rejected a fresh settlement proposal and had been pressing ahead with a winding-up petition.