Singapore, March 23 - Singapore-listed Celestial Nutrifood , a China-based maker of soybean food and beverage products, said on Monday its auditor has warned of risks posed by the possible early redemption of S$235 million ($155.1 million) in convertible bonds.
PricewaterhouseCoopers (PWC) said that while Celestial's financial statements and balance sheets have been prepared in accordance with Singapore financial reporting standards, the firm needed to raise money in case the S$235 million worth of bonds are redeemed this year.
"If all the holders of the bonds exercise their options to early redeem the bonds and the additional financing is not forthcoming, the company may be unable to continue in operational existence for the foreseeable future," Celestial quoted PWC as saying in a filing to the Singapore Exchange.
Celestial, which has a stock market value of about $44 million, issued five-year convertible bonds in 2006 that contained a put option allowing holders to redeem the bonds after three years.