In the course of our search for new antifungal antibiotic from fungi we had isolated a fungal strain Y-87,2100 which produced a metabolite active against Candida albicans. The bioactive compoundwas unstable, losing its activity during concentration of its solution and had to be converted to a stable molecule 2 for characterisation. In this paper we report the fermentation and isolation of 1 as well as conversion of 1 to 2 followedby structure elucidation of 2.