Bombay HC rejects winding up case against Wockhardt | business | Hindustan Times
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Bombay HC rejects winding up case against Wockhardt

business Updated: Oct 15, 2009 23:11 IST

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The Bombay High Court has rejected debt-ridden pharmaceutical firm Wockhardt on Thursday claimed that a winding up petition filed against it by one of its lenders, DBS BANK.

"We understand the petition of DBS Bank was not admitted by the high court," a Wockhardt spokesperson said in a statement.

DBS Bank spokesperson could not be reached for comments.

Wockhardt, which has a debt of over Rs 3,700 crore had undertaken a corporate debt restructuring (CDR) programme after it was approved by an empowered group on June 30, 2009 and 14 banks have participated in it.

The spokesperson claimed that DBS Bank had an option to participate in the CDR process but chose not to do so.

"The company and the CDR bankers believe that this petition is not sustainable as it is against public policy," the spokesperson added.

As part of the CDR process, Wockhardt had sold off its nutrition and animal healthcare business for about of Rs 790 crore and completed the CDR much ahead of scheduled deadline of 2015.

The pharma company had also recently signed an Rs 909 crore deal with hospital chain Fortis Healthcare to sell its 10 hospitals.

The company's promoters, the Khorakiwala family, recently sold its German subsidiary Esparma for Rs 120 crore.