**IMPORTANT COURT DATE SET FOR A MARCH 21st - EXPECT DECISION ON "WINDING-UP APPLICATION" AND "PROVISIONAL LIQUIDATOR"**
As previously reported, the High Court of Singapore is expected to hear arguments on March 21st, 2011, relating to the "Winding-Up" application filed by Bank of New York Mellon (BNY), the trustee of Celestial Nutrifoods' outstanding convertible bonds. The Board of Directors of Celestial Nutrifoods has challenged the "Winding-Up" application so that attempts to restructure the firm can be blocked.
On March 21st, the High Court of Singapore will also hear arguments with regards to the recent appointment of a "Provisional Liquidator". In December 2010, the High Court appointed FTI to oversee the orderly restructuring of Celestial Nutrifoods. The Board of Directors has challenged this decision and is trying to fight this appointment. The Board wants management to retain control of the company's assets, despite the massive value destruction it has overseen.
Clearly the upcoming court date is very important. In order for an orderly restructuring of Celestial Nutrifoods to proceed, the court must accept the "Winding-up" application and re-affirm FTI as the "Provisional Liquidator". FTI can then take the actions necessary to recover fraudulent conveyances, pursue potential asset sales, hire competent turnaround managers and remove the current (entrenched) Board of Directors. These steps are necessary if investors are to recoup their investments in the company.
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