India?s largest lender by assets, State Bank of India, has filed a winding up petition in the Bombay High Court against laptop and tablet maker Zenith Computers after the company failed to repay the bank, a foreign currency bond holder.

SBI, which purchased these bonds from original buyer Credit Suisse, filed the petittion on January 20, 2012, a copy of the SBI petition reviewed by FE shows. Bombay High Court had its first hearing on April 3. Zenith Computers? group company, Zenith Infotech, is now fighting bond holders after having defaulted on its FCCB.

Zenith Infotech have to repay R450 crore to its FCCB holders.

FCCB is a quasi debt instrument with an optionallowing holders to convert the debt into equity shares at a preset price between the issuer and subscriber.

According to a court filing, Zenith Computers raised $20m in 2006 by issuing FCCBs. Credit Suisse, the original subcriber, later sold these bonds, maturing on August 4, 2011, to SBI. A company issuing an FCCB will have to repay interest along with interest on the maturity date if the bond is not converted into equity shares. SBI has claimed that Zenith Computer failed to pay the semi-annual interest of 0.5% from February 4, 2011 onwards. Legal firm Dave & Girish & Co, which represents SBI, refused to comment as it said did not have client permission.

?We have not received any intimation of State Bank of India filing any winding up petition against us till date,? Zenith Computers said in an e- mail response. ?We are not even aware that SBI are bond holders as we have not issued any bonds to them. We shall be contesting the same after we receive the copy of the petition, if any. We have not appointed any legal advisers,? Zenith officials said.

?The company has in 2006 issued and allotted FCCBs of the value of $12 million. The company has bought back FCCBs of the value of $2 million in August, 2009, the outstanding FCCBs are of $10 million as on 31st March, 2010, ? the company told its shareholders in its Fiscal 2010 annual report. The Saraf family owns 43.39% stake in the company and another promoter group company Zenith Technologies holds 10.44% stake.