A pair of U.S. alternative investments giants has settled a legal battle with an Indian pharmaceutical company over its default on convertible bonds.
Venus Remedies said it has struck a deal with Citadel Investment Group and D.E. Shaw Group. The two firms had sued the company last year after Venus failed to redeem some US$12 million in foreign currency convertible bonds last summer. The pharma blamed the global economic crisis for its decision not to redeem the bonds.
Under the settlement—reached under pressure from the Indian courts—Citadel and D.E. Shaw have agreed to withdraw their winding-up petition, a Venus official told the Press Trust of India. The company will pay the two firms US$7 million within the next 18 months, with the other US$5 million coming over the next five years.
Citadel and D.E. Shaw will also get to keep their investments in Venus.