Barclays Bk, Calyon Bk move Bombay HC against Wockhardt

There seems to be growing resentment amongst Wockhardt's corporate debt restructuring process. The company is currently facing litigation at the Bombay High Court, reports CNBC-TV18's Ashwin Mohan.

Here is a verbatim transcript of his comments on CNBC-TV18. Also watch the accompanying video.

Wockhardt's foreign lenders seem to be up in arms against the company’s CDR, or corporate debt restructuring package. They are opposed to certain terms in the CDR package. The first bank to react legally at least is DBS Bank which has filed a winding up petition against Wockhardt at the Bombay high court. The company has also sort the court to appoint an official liquidator.

We are not sure and we do not have any official confirmation on the dues claimed by DBS Bank but sources do indicate that the dues could hover around Rs 135 crore i.e. Rs 45 crore towards working capital loans, and Rs 90 crore towards derivative losses. That’s the total which DBS is alleging that Wockhardt owes to them.

But interestingly, today in court the DBS lawyer did point out that both the parties are in talks for an out-of-court settlement and there is a strong possibility of that settlement being intimated to the court today. So that as far as DBS is concerned.

But the worries for Wockhardt are not yet over. There are two other banks which have also filed winding up petitions in the Bombay high court and those banks are Barclays Bank and Calyon Bank and they have also requested the Bombay High Court to appoint an official liquidator.

Those hearings were not heard today and those hearings can come up on December 15. So as of now we will have to wait and watch whether they settle or not i.e. DBS and Wockhardt. But on December 15, Wockhardt will have to face Barclays and Calyon Bank at the Bombay High Court.