SINGAPORE: The Singapore High Court on Thursday (Feb 20) granted embattled water treatment firm Hyflux another two-month extension for its debt moratorium.
The court-sanctioned moratorium, which currently grants it a reprieve from creditors until Feb 28, will now end on Apr 30. This was the extension that Hyflux had sought.
AdvertisementAdvertisement[h=3]READ: New suitor Longview International and joint venture partner express interest in embattled Hyflux[/h][h=3]READ: High Court grants Hyflux one-month extension to its debt moratorium[/h]The next court hearing is set for Mar 10 where Hyflux will seek leave to convene creditor meetings for approving the schemes of arrangements.
Represented by its new legal advisers from Clifford Chance and Cavenagh Law, Hyflux said it plans to hold scheme meetings for creditors on Apr 17 and dispatch a circular to shareholders by Apr 23.
AdvertisementAdvertisementIt intends to seek the court’s green light by Apr 28 to go ahead with the rescue plan it has with United Arab Emirates utility firm Utico.
No parties were opposed to the extension of the moratorium. This marks the company’s ninth extension of its debt moratorium since applying for court protection in May 2018 to reorganise its business and liabilities.
Hyflux is in the final legs of concluding the S$400 million rescue pact it signed with Utico last November.
[h=3]READ: Hyflux independent director resigns due to ‘unresolved differences’ over legal team change[/h]Since then, two new suitors have emerged. The first is a little-known investor called Aqua Munda which came up with an offer in December to purchase about S$1.8 billion worth of Hyflux’s debts.
The second is a Singapore-based company called Longview International Holdings which on Wednesday expressed interest in investing in Hyflux together with a joint venture partner from China.
Asked by Judge Aedit Abdullah if the new suitor could cause any changes to its plans, Mr Nish Shetty from Clifford Chance said the letter from Longview is “very new” and it remains “early days” to tell if the investor has a proposal that merits consideration.
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