SkyePharma, which specialises in drug delivery technologies, will not be able to meet its liabilities if it does not renegotiate the terms of bonds that mature next year.

The company has convertible bonds with a face value of £89.6m ($179.7m), of which £69.6m could be called for repayment in May 2009. A similar put option exists on a further £20m of convertible bonds for June 2010.