Lehman Bros withdraws petition against Wockhardt

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Lehman Bros withdraws petition against Wockhardt

CNBC-TV18's Ashmit Kumar reports that an out-of-court settlement has prompted Lehman Brothers to withdraw their petition.

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Excerpts from After the Bell on CNBC-TV18 Watch the full show » Wockhardt BSE | NSE 25/05/12 Are Mutual Funds betting on Wockhardt?

The final hurdle for Wockhardt in the sale of its nutrition business has been cleared. CNBC-TV18's Ashmit Kumar reports that an out-of-court settlement has prompted Lehman Brothers to withdraw their petition.

The Lehman Brothers had demanded a payment of USD 24 million due to them under the swaps and derivatives agreement. Sources say a settlement has been reached between Wockardt's European subsidiary and Wall Street banking giant.

It had also sought to restraint Wockhardt from selling its nutrition business. However, the withdrawal of petition clears the way for the sale.

Reports had suggested that French dairy and nutrition major, Danone is in advanced talks with Wockhardt for buying out the nutrition business of the Indian pharmaceutical company.

Wockhardt is expected to fetch Rs 1,600 crore from the sale of its nutrition business. The deadline for sale is Mar 31 2011.

A part of the sale proceed will be used to debt repayments. The company has a debt of about Rs 3,000 crore.

Wockhardt's nutrition business portfolio has infant food brands such as Farex, Dexolac and Nusobee and also includes adult food supplement Protinex.

In March 2010, Wockhardt's deal with Abbot to sell its nutrition business got stalled due to the dispute with the bondholders.