Pharma major Wockhardt came in for some flak from the Bombay High Court today, which questioned its debt repayment capacity to its foreign currency convertible bond (FCCB) holders.
The court also suggested a payment formula to settle the long-pending spat, reports CNBC-TV18's Ashwin Mohan reports. It said the trustee can demand payment as it deems Wockhardt liable.
Wockhardt counsel said that object of the Danone sale is to satisfy debt. However, it admitted liability to bond holders. It said the unsettled FCCB is worth Rs 365 crore.
The court said Wockhardt is not able to repay, therefore, it is raising objections. However, the court is open to granting further time to Wockhardt to pay balance FCCB debt.
The court suggests payment formula to resolve the spat between Wockhardt and its overseas bondholders. It said Wockhardt may deposit unsecured debt liability at court within timeframe or face liquidation.
HC will hear the case next on September 21. Both parties are expected to report to Bombay HC's suggestions.
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