SINGAPORE: Embattled water treatment firm Hyflux has applied to the Singapore High Court for a further extension of its debt moratorium as discussions for potential investments continue, it said in a filing to the Singapore Exchange on Wednesday (Jul 31).
The applications, filed by Hyflux and three of its subsidiaries, will be heard at the upcoming case management conference scheduled on Aug 2 – the day its court-approved protection from creditors will expire.
AdvertisementAdvertisementHyflux did not specify how long an extension it is seeking.
The debt-laden firm has been under a court-supervised restructuring process since May 2018.
Founded in 1989, Hyflux made a name for itself with its proprietary membrane technology and was regarded one of Singapore’s most successful business stories, before a heavy reliance on borrowing and a failed venture into power generation hurt its finances.
Over the past year, the home-grown firm has been granted four moratorium extensions, but it will unlikely have it easy for its latest application.
AdvertisementAdvertisement[h=3]READ: From making waves to drowning in red ink: Hyflux, Tuaspring and how a business giant came undone[/h]During the previous case management conference in May, it had sought for a four-month extension but was only granted two months by Justice Aedit Abdullah, who said he was “concerned about giving four months (extension) at a go”.
“(An) extension should be much more controlled,” he had said, amid objections from some bank creditors who wanted the company to be kept on a tighter leash.
Hyflux on Wednesday also updated that it continues to be in discussions with potential strategic investors and stakeholders, “with a view to entering into a binding agreement for an investment in the group”.
Among those announced over the past months include a possible S$400 million investment from United Arab Emirates utility firm Utico.
In a joint statement on Jul 11, both companies said they were working towards a binding deal that will see Utico invest S$400 million for an 88 per cent stake in Hyflux. However, some confusion emerged a few days later when Utico announced in a statement valuing the rescue deal at S$535 million. Hyflux said on Jul 17 in a bourse update that it has sought clarification from the potential white knight on that.
Advanced negotiations with global multi-strategy investment fund Oyster Bay Fund over a possible investment of up to S$500 million has also been ongoing. Hyflux also said in June that it has received a non-binding letter of intent from an unnamed China-based suitor.
Hyflux said it will make the appropriate announcements as and when there are any further material developments.
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