Celestial Nutrifoods' management has overseen a massive destruction of value over the last 2 years and has proven itself to be incapable of managing the affairs of the company. At the very least, management has shown itself to be incapable of managing the financial affairs of the company.
Sadly incompetence is just part of the story. Based on recent investigations, it appears that Celestial's management may have deliberately siphoned cash out of Celestial Nutrifoods in the months preceding the 2009 bond default. These cash flows are at the heart of the firm's current insolvency.
If the above is indeed true, management may have engaged in an act of corporate fraud. Note that FTI consulting, the court-appointed provisional liquidator, has identified large, unexplainable cash outflows in 2008 and 2009 and is in the process of preparing legal action to recover these cash outflows.
Celestial Nutrifood's management must clearly go, but the Board of Directors is equally guilty of incompetence and has shown itself to be complicit in the management team's dealings. By law, the Board has a fiduciary duty to protect and promote the interests of shareholders. The Board has clearly failed in this regard by allowing management to ruin the firm.
The bottom line is simple: management and the Board must be removed immediately. In order to achieve this, shareholders should provide FTI full support as it attempts to seize control of Celestial Nutrifoods. Shareholders should also contact SGX and MAS to raise the awareness of the issue.
i still have lots of hope that will get my hard earned money back. I am still paying some installment to bank on borrowed money which I invested.. Can i know what is the current status and recovery update.
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