Mumbai-based pharmaceutical major Wockhardt has become the latest victim of piling debt. The company has been referred to the corporate debt restructuring (CDR) mechanism, a system to deal with cases where multiple lenders are involved.
In its filing with the Bombay Stock Exchange on Tuesday, the pharma major said that Habil Khorakiwala, currently chairman and managing director, has stepped down from the post of managing director and will continue as executive chairman. The board nominated his son Murtaza H Khorakiwala as the next MD.
Wockhardt said its board has decided to make a reference to the CDR Cell through its lead banker, ICICI Bank, for financial restructuring of its debts. The move was necessitated in view of the adverse market conditions, liquidity constraints and debt burden, the company added.
Wockhardt’s promoter-family, which holds 74% stake in the company, has pledged 79.21% of it with various banks and institutions.
The company also postponed its annual results, due to be announced today, to April 25 as evaluation of a potential restructuring of certain businesses and its units had delayed the audit. The company follows January-December financial year.