Wockhardt board approves preferential issue

Wockhardt board approves preferential issue

Mumbai: Loss-making Wockhardt Ltd said on Friday its board has approved a preferential issue of up to 400 million convertible or non-convertible redeemable preference shares.

It will also issue foreign currency mandatorily convertible bonds (FCMCBs) up to $74.09 million in exchange of existing foreign currency convertible bonds (FCCB) of the same amount, the drugmaker said in a statement to the stock exchanges.

Out of the above outstanding FCCBs, majority bondholders holding bonds of $42 million have agreed to subscribe for the FCMCBs and the same offer will be given to the balance bondholders, it added.

The trustees who have filed a winding up petition on the instruction of majority bondholders, have agreed to withdraw it, the company said.

Last year, Wockhardt sold some of its non-core assets and got lenders approval to restructure its debt. Wockhardt Hospitals, controlled by the founders of Wockhardt, has been trying to raise money since its initial public offer (IPO) was withdrawn last year on poor investor response.