SINGAPORE: Water treatment firm Hyflux said on Friday (Jul 6) that its subsidiary has reached an agreement with Maybank on the divestment process of the Tuaspring Integrated Water and Power Plant.
Under the agreement, Maybank, which is the only secured creditor of its unit Tuaspring, will “refrain from commencing enforcement proceedings against Tuaspring or its properties and/or assets, including its Integrated Water and Power Project”.
AdvertisementAs such, the subsidiary withdrew its application for debt moratorium on Jul 6. The application was originally scheduled to be heard at the Supreme Court on Friday (Jul 6) at 2.30pm, but had been cancelled.
According to the SGX filing, Hyflux said Maybank has provided Tuaspring with banking facilities that are secured by various collaterals and securities over Tuaspring’s properties and assets, including its Integrated Water and Power Project.
Moving forward, Hyflux will continue to seek potential investors with a view to divesting its interest in the integrated plant, which cost more than S$1 billion to build and marked the company's misstep into the electricity market.
“The company is to execute a binding agreement with a successful bidder or investor by Oct 15, 2018, obtain approval for the transaction from Maybank, the Public Utilities Board and/or the Singapore High Court (if necessary) by Dec 11, 2018, and obtain the approval of the shareholders by Feb 4, 2019,” the statement said.
AdvertisementAdvertisementMaybank will also be actively involved and engaged in the divestment process.
In particular, a valuer will be appointed by Maybank to conduct a valuation exercise of Tuaspring’s Integrated Water and Power Project, the statement said.
Tuaspring will appoint a monitoring accountant and special accountant to monitor its cash flow and to review the divestment process, respectively, with their reports to be shared with Maybank, it added.
Hyflux also reiterated its intention to divest its interests in the Tuaspring project, its largest single asset sitting on its balance sheet.
This will be done at the “best possible value in order to facilitate the Hyflux Group’s wider reorganisation process, and maximise value for all stakeholders, including holders of its preference shares and perpetual securities,” the statement said.
Seen as one of Singapore’s most successful business stories, Hyflux made the unexpected move last month to seek court protection for a reorganisation of its business and liabilities.
The household name, which first made its mark in water treatment and later ventured into power generation, cited “prolonged weakness” in the local power market for the turnabout in fortunes.
On Jun 19, Hyflux and four of its subsidiaries – Hydrochem, Hyflux Engineering, Hyflux Membrane Manufacturing and Hyflux Innovation Centre – were granted an additional six-month reprieve from creditors by the High Court.
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