ShengdaTech fails to purchase $25.58 million of 6% convertibles

By Caroline Salls

Pittsburgh, June 9 - ShengdaTech, Inc. failed to purchase $25,578,000 of 6% convertible senior notes due 2018 as required under a contractual put option, according to an 8-K filed with the Securities and Exchange Commission.

The company was required to purchase the notes of holders who exercised the put option on June 1 at par plus accrued interest up to but excluding the purchase date.

According to the 8-K, the indenture trustee or holders of 25% of the total principal amount of the notes can declare the notes immediately due and payable in connection with the non-payment.

Based in Tai'an City, China, ShengdaTech makes and markets nano-precipitated calcium carbonate and coal-based chemicals. The products are used in various applications including tires and polyvinyl chloride, or PVC, building materials.

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