In a move that has sparked off speculation about its motive, Mumbai-based Sun Pharmaceutical has challenged the settlement between Wockhardt and some of its creditors. At a time when Wockhardt is about to strike a deal with several offshore creditors, Sun Pharma has stepped in, claiming that it holds close to 20% of the foreign currency convertible bonds (FCCBs) that Wockhardt had issued to raise $110 million.
The development, which has come as a nasty surprise to Wockhardt, may delay the new agreement the company was planning to enter with some of the other FCCB investors. Sun Pharma insists that it’s “purely a financial investment by Sun Pharma Global” —a Sun Pharma subsidiary that has been holding the bonds “for a long time” . “We are not interested in acquiring Wockhardt or any of its assets,” said a Sun Pharma spokesperson . According to the person, “several lenders, including a public sector bank, are opposing the inadequate settlement terms” .
The development, which has come as a nasty surprise to Wockhardt, may delay the new agreement the company was planning to enter with some of the other FCCB investors. Sun Pharma insists that it’s “purely a financial investment by Sun Pharma Global” —a Sun Pharma subsidiary that has been holding the bonds “for a long time” . “We are not interested in acquiring Wockhardt or any of its assets,” said a Sun Pharma spokesperson . According to the person, “several lenders, including a public sector bank, are opposing the inadequate settlement terms” .
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