Monday, 23 March 2009

Celestial Nutrifoods Auditor Warns Of Going Concern Doubt

Celestial Nutrifoods Ltd.’s (C56.SG) auditor said Monday that the company faces risks to continuing as a going concern if it is unable to raise financing to cover the possible early redemption of some convertible bonds.

1 comment:

Guanyu said...

Celestial Nutrifoods Auditor Warns Of Going Concern Doubt

SINGAPORE (Dow Jones)--Celestial Nutrifoods Ltd.’s (C56.SG) auditor said Monday that the company faces risks to continuing as a going concern if it is unable to raise financing to cover the possible early redemption of some convertible bonds.

According to PricewaterhouseCoopers LLP, the company would have to disemburse S$274 million if all holders of the bonds exercise their redemption option on June 12.

The auditor said that Celestial’s financial statements are prepared on a going concern basis because the company is in discussions with financial institutions to arrange for credit facilities.

However, “if all the holders of the bonds exercise their options to early redeem the bonds and the additional financing is not forthcoming, the company and the group may be unable to continue in operational existence for the foreseeable future,” the auditor said in a report attached to a filing from Celestial with the Singapore Exchange.