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 FCCBs that Wockhardt had issued to raise the US$100 million.

The action by Sun Pharma may delay the new agreement Wockhardt was planning to enter with some of the other FCCB investors. Sun Pharma insists that it is “purely a financial investment by Sun Pharma Global” and that they “are not interested in acquiring Wockhardt or any of its assets”. According to Sun Pharma, “several lenders, including a public sector bank, are opposing the inadequate settlement terms”.

However, a Wockhardt spokesperson said most of the investors are backing the settlement proposed by the company, which has taken months of negotiations.

Reference

Wockhardt Press Release. Sun Pharma subsidiary receives warning letter from USFDA. 31 August 2010.