New Delhi: Drug maker Wockhardt Ltd said its lenders have approved revamping its debt.

Restructuring of the debt, release of working capital and fresh priority debt by banks pending divestment of non-core assets is a positive step forward, the Mumbai-based company said in a statement to the Bombay Stock Exchange on Thursday.

Wockhardt approached the corporate debt restructuring (CDR) cell through ICICI Bank Ltd after it sought more time to pay loans and foreign currency borrowing worth $108.5 million (Rs531 crore today). It is planning to sell some of its assets to meet its repayment obligations.

The CDR cell, backed by the Reserve Bank of India, requires approval from 75% of a referred company’s lenders for a proposal to be passed.

The company had a net debt of about Rs3,400 crore in the year ended 31 December and Rs380 crore in cash, it said on its website as of 31 March. The company’s debt-to-equity ratio is 2.3 times, it said.

Wockhardt’s then auditor S.R. Baltiboi and Co. noted that the company had defaulted to the extent of Rs5 crore and Rs13 crore owed to two banks in December.

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