ShengdaTech, Inc. (fka SDTHQ)

[asdgwest]

you like proof, don't like to read news. here it is for you, lazy trader.

Until the huge put option expires, the stock will always goes down. I see some traders compare with other chinese scam stocks here which made bounce, now the story with this stock is very different.

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Form 8-K/A for SHENGDATECH, INC.

9-Jun-2011

Triggering Events That Accelerate or Increase a Direct Financial Obligation o


Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement.
Pursuant to the terms of an Indenture, dated as of May 28, 2008 (the "Indenture"), between ShengdaTech, Inc. (the "Company") and The Bank of New York (the "Trustee"), holders of the Company's 6.0% Convertible Senior Notes due 2018 (the "Notes") had the contractual right (the "Put Option") to require the Company to purchase on June 1, 2011 (the "Purchase Date") any or all of the outstanding Notes held by each such holder at a purchase price of 100% of the principal amount thereof, plus any accrued and unpaid interest up to but excluding the Purchase Date, payable in cash (the "Purchase Price"). In accordance with the terms of the Indenture and the Notes, a notice of the Put Option was sent to holders of the Notes. As of May 24, 2011, the deadline for holders to exercise the Put Option, holders of all of the Notes had exercised the Put Option in the aggregate sum of $25,578,000. The Company did not pay the Purchase Price for the Notes on the Purchase Date. Based on the nonpayment, the aggregate principal amount of the Notes, plus any accrued and unpaid interest and any other amounts due and owing on the Notes could be declared immediately due and payable by the Trustee or by holders of 25% or more of the aggregate principal amount of the Notes.