Embattled Hyflux gets another extension for debt moratorium until Apr 30
20 February, 2020
The Singapore High Court on Thursday (Feb 20) granted embattled water treatment firm Hyflux another two-month extension because of 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 is the extension that Hyflux had sought.
Another court hearing is defined 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.
It intends to get 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 against the extension of the moratorium. This marks the company’s ninth extension of its debt moratorium since trying to get court protection in-may 2018 to reorganise its business and liabilities.
Hyflux is in the ultimate legs of concluding the S$400 million rescue pact it signed with Utico last November.
Since that time, two new suitors have emerged. The foremost is a little-known investor called Aqua Munda which developed 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 buying Hyflux as well as a jv partner from China.
Asked by Judge Aedit Abdullah if the brand new suitor might lead to any changes to its plans, Mr Nish Shetty from Clifford Chance said the letter from Longview is “very new” and it remains “start” to tell if the investor includes a proposal that merits consideration.
Source: www.channelnewsasia.com
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