Celestial NutriFoods gets puts for S$234.8 million of 0% convertibles, searches for means to pay

By Angela McDaniels

Tacoma, Wash., May 26 - Celestial NutriFoods Ltd. said holders of S$234.8 million of its S$235.0 million zero-coupon convertible bonds have exercised their June 12 put option.

The company will not be able to meet this payment obligation unless it can obtain new funding in a currency other than Chinese yuan drawable outside of the People's Republic of China before June 12, according to a company news release.

Celestial NutriFoods said it is not optimistic about its ability to obtain this funding but will continue its fundraising efforts. In the meanwhile, it will begin discussions with the bondholders about various ways of addressing the put option.

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

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