Celestial Nutrifoods seeks solution for convertibles' put option

By Angela McDaniels

Tacoma, Wash., Aug. 31 - Celestial Nutrifoods Ltd. is searching for an "amicable solution" regarding the early redemption of its convertible bonds, according to a company news release.

The company said it is working with the bondholders to appoint an independent financial adviser to review its financial position.

As previously reported, holders of S$234.8 million of the company's S$235.0 million zero-coupon convertibles exercised their June 12 put option.

In May, Celestial Nutrifoods said it would not be able to meet this payment obligation unless it obtained new funding in a currency other than Chinese yuan drawable outside of the People's Republic of China before June 12. The company added that it was not optimistic about its ability to obtain this funding.

In June, the company announced that its board of directors was discussing the redemption of the convertibles with bondholders representing a "substantial number" of the securities.

Celestial NutriFoods is a Singapore-based soy protein-based food and beverage product manufacturer in China.

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