The Hindu Business Line : Wockhardt debt recast approved

The company has accepted the CDR package, Wockhardt told the Bombay Stock Exchange, without giving details. The company had a debt of Rs 3,400 crore as on December 2008. In March, Wockhardt said it would approach the CDR Cell through ICICI Bank for restructuring its debts through the CDR mechanism.

Restructuring of debt, release of working capital and fresh priority debt by banks pending divestment of non-core assets are positive steps forward and should provide a great impetus to its core operations, the company told the BSE on Thursday.

The company has divested stake in two of its businesses – its German and animal health business. More non-core businesses will be sold in the next three to six months, Wockhardt’s Chairman, Mr Habil Khorakiwala, said recently.

Restructuring

A restructuring exercise is under way and getting a minority investor for the hospital business is also on cards, a decision on which is expected soon. The company is also looking for a strategic investor for its biotech business, which is expected to be formalised in a year.

On Wockhardt’s Foreign Currency Convertible Bonds, Mr Khorakiwala had said, as part of its restructuring, the company was looking at alternatives including a buyback if available at a discount. The FCCB of $108 million is to mature in October.

Wockhardt shares closed up 6 per cent at Rs 126 on the BSE.

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