Sun Pharma, which has thrown a spanner in a near-settlement between debt-ridden Wockhardt and some of its lenders by challenging it in the Bombay High Court, is expected to take a tough stance in the court on Thursday, when the case comes up for hearing.

It is expected to say that lenders of the beleaguered company would have the first claim to have their grievances addressed and their money settled. It will also put forward the view that a majority of Wockhardt’s foreign currency convertible bond (FCCB) holders oppose a revised proposal from Wockhardt, and that Wockhardt will have to honour its original FCCB terms.

Last week, Sun Pharma sprang a surprise by saying it held around 20% of the FCCBs that Wockhardt had issued to raise $100 million.

It has reiterated that this was purely a financial investment by Sun Pharma Global ? a Sun Pharma subsidiary that has held the bonds for a long time. Contrary to what Wockhardt had put forth, that it has the backing of most of the FCCB investors to a revised settlement, sources in Sun Pharma said that it is not just Sun that is opposing the revised settlement, but other entities holding as much as 66% of FCCBs.

Wockhardt had a market cap of Rs 2,400 crore on Tuesday. Analysts say that even if the company dilutes 20% equity, it should get Rs 500 crore to pay off lenders.

“The entry of Sun Pharma into the scene might lengthen the overall process of settlement for Wockhardt,? says Sarabjit Kaur Nangra, vice president, research with Mumbai-based Angel Broking.

?However, from Sun Pharma’s perspective, the exposure they have in Wockhardt is less compared to the cash Sun Pharma has in its balance sheet. So, one should not read too much into that investment,? she added.

Wockhardt shares fell 3.6% to close at Rs 219.30 on the BSE on Tuesday. The stock has lost around 8% on the exchange since last Tuesday.

There was wide-spread expectation that Wockhardt’s negotiations with a section of the FCCB holders, led by US-based investor fund QVT, would pay off, and these investors, who had earlier filed a winding-up petition in the Bombay High Court against Wockhardt, would accept the revised settlement.

Wockhardt, which had a debt of Rs 3,700 crore, had placed an option before its foreign lenders and investors to buy back the FCCB at a discount. For those lenders and investors who did not go in for the buyback option, Wockhardt offered an exchange of their bonds for preference shares, convertible partly in 2015 and in 2018.