SINGAPORE: More than one week after it announced a S$530 million lifeline from Indonesian investors, Hyflux on Wednesday (Oct 31) said it intends to seek a four-month extension of its ongoing moratorium.
The moratorium, which grants the embattled water treatment firm a six-month reprieve from creditors, is set to expire on Dec 18.
AdvertisementHaving an extension of the moratorium until April will allow Hyflux to “continue discussions with creditors and have time to propose a scheme of arrangement”, its legal advisors from WongPartnership told the court in an interim update.
When asked by Justice Aedit Abdullah about what the company hopes to achieve with an extended moratorium, lawyer Manoj Sandrasegara said he expects the scheme of application that underpins the restructuring to be passed by then.
Hyflux is also mulling an application for debtor-in-possession financing “either today or tomorrow”, added Mr Sandrasegara as he outlined upcoming steps in Hyflux’s ongoing court-supervised reorganisation.
On the sale of the company’s single largest asset – the Tuaspring Integrated Water and Power Plant – Mr Sandrasegara said Hyflux will need to continue negotiations with Maybank, its largest secured lender.
AdvertisementAdvertisementMaybank had earlier granted Hyflux’s request for more time and had given it an additional two weeks to find a buyer and execute a binding purchase agreement for the plant by Oct 29.
However, with the latest announcement of an investment from Indonesia’s Salim Group and Medco Group, Tuaspring will remain part of the company moving forward, according to Mr Sandrasegara.
“The deal is (to) have Tuaspring be part of the new Hyflux group going forward so there will be continued negotiations with Maybank on how this can be achieved,” he said.
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