HDFC Bank, ING Vysya objects Wockhardt paying SBI at par with other FCCB holders

HDFC Bank and ING Vysya, domestic lenders to Wockhardt, have objected to the pharma company offering SBI the same treatment as agreed with other FCCB holders who are being paid following the court order.

Wockhardt has agreed to pay SBI Rs 242 crore in instalments. However, in 2009 SBI had settled for preference shares against $40 million FCCB it held.

In a recent meeting of the corporate debt restructuring ( CDR) forum, HDFC Bank and ING Vysya made an observation that SBI should not be paid at par with other FCCB holders since they had already accepted preference share as settlement.

But Wockhardt is forced to pay SBI because of a clause that if the pharma company offers a better deal to any other FCCB holders, the same should be offered to SBI.

Source: EconomicTimes