Wockhardt, RBS settle case mutually

MUMBAI: Pharma major Wockhardt Pharmaceutical and its lender, Royal Bank of Scotland, on Thursday agreed to mutually settle their case relating to non-payment of derivatives dues. The Bombay High Court has granted the companies three weeks time for resolving the issue.

Mumbai-headquartered Wockhardt’s lender RBS had filed a case in the Bombay High Court for non-payment of its dues amounting to Rs 20 crore. The amount claimed by RBS was partly from derivatives loses and partly from working capital.

On Thursday, when the case came for hearing, applicant RBS and respondent Wockhardt both showed their willingness to settle the case out of court, within three weeks. Justice SJ Kathawala granted the plea and adjourned the case till July 7. The petition was filed in March 2010 by RBS.

"If the settlement breaks down, then both RBS and Wockhardt would face issues in terms of proving the claims of derivatives losses," said a person close to the company. "Wockhardt is trying to settle the dues in all possible ways as the pharma sector is picking up well," he added.

According to Deven Choksey, managing director of KR Choksey Shares and Securities, "As a result of restructuring, Wockhardt showed a turnaround in FY2011 after facing losses for three consecutive years."

The applicant RBS is represented by Praveer G Shetty while Wockhardt is represented by Majmudar & Co.

On Thursday, the day of the hearing, shares of Wockhardt closed down 0.08% at Rs 372.75 on the Bombay Stock Exchange, whereas the broader index closed down by 0.81%.