Rhodia, the junk-rated French specialty chemicals group, has struck an agreement with its bondholders over the repayment of a $290m (€227m) private placement bond and entered exclusive talks with Danisco of Denmark to sell its food ingredients business as part of a restructuring plan.

Rhodia said on Friday that it will repay half of the bond to investors, which are understood to include several US hedge funds, by the end of the month and the remaining $145m at the end of June.