We sent a winding up notice on May 30 and gave KSL and Industries 21 days to respond, said a source close to the development. After they failed to respond, we filed a winding up petition with the Bombay High Court on July 3.
The petition has been filed in the HC through law firm Tri Legal. This is the third instance where the hedge fund has run into problems while recovering its money, after healthcare company Wockhardt and IT-company Zenith Computers. QVT Financial has an exposure ranging in the high hundreds of millions in India and nearly 15-17% of its investment is in trouble, the person added, not wishing to be identified as the matter is in court.
KSL and Industries Ltd is seeking to restructure its R2,800 crore debt via corporate debt restructuring. The company has approached Bank of India, UCO Bank and Punjab National Bank for the same. The decision CDR will be taken on July 30.
No bank will agree for CDR when they know that the company has a winding up petition against it,
the person quoted above said. KSL had informed the Bombay Stock Exchange on May 26 that it was in talks with bond holders to restructure the FCCB redemption. However, sources said that no such discussions have taken place.
They havent spoken to the bondholders, there is not talk of restructuring the FCCBs, the person quoted above said.