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Utico will walk unless Hyflux inks definitive deal by Aug 16
日期:2019-08-03 01:42 作者: 来源:新加坡海峡时报网 相似文章:0条
           SINGAPORE - Hyflux has been given an ultimatum from the Middle Eastern utility firm that has lodged a rescue bid - sign by August 16 or the deal is off. Utico chief executive Richard Menezes said on Friday (Aug 3): "We are a millimetre away from signing, its up to them ... The value of Hyflux is falling." He noted that the TuasOne waste-to-energy plant is Hyfluxs "crown jewel" but it will only begin commercial operations next year and needs funds next month, which Utico has agreed to provide. Mr Menezes added: "We met NEA (National Environment Agency) today and they said they will support it as long as there is funding for next month. "They are running out of money at the project level." The CEO was speaking to reporters at the end of a Singapore High Court session on Friday where Hyflux appealed for more time to compile a rescue. The troubled water treatment plant had hoped to get its debt moratorium extended until the end of November but Justice Aedit Abdullah only gave it two more months. Hyflux can seek a further extension on Sept 30. Justice Aedit said he wants to see Hyflux file an application to convene creditor scheme meetings by September before allowing the case to drag on: "If it doesnt work out in the next few months (with either Utico or other potential investors), I think Ill pull the plug."

        
Hyflux also updated on Wednesday 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.

Related Story Hyflux applies to further extend debt moratorium, says talks continue with potential investors Related Story Would-be Hyflux white knight Utico plans to list in Singapore Unlike the failed Salim-Medco rescue deal where Hyflux first signed a definitive agreement and then negotiated the finer details before hitting a wall, the approach it has taken with Utico is different. Various stakeholders are engaging directly with Utico, said WongPartnership lawyer Manoj Sandrasegara, who represents Hyflux. "While the definitive agreement is being negotiated, the allocation is being negotiated simultaneously as well, in terms of what goes to creditors and what goes to capital needs," he said. "We are optimistic that when the definitive agreement is signed, we can move forward quicker because by that time, the allocations should have been agreed." Utico has agreed to take an 88 per cent stake in Hyflux through a $300 million equity injection and a $100 million shareholder loan. So far, only Hyfluxs unsecured working group of financial creditors has not agreed with the commercial terms of the restructuring, though other lenders like DBS Bank are supportive. The working group said it has not received any proof of funds from Utico. Mr Menezes said proof has been provided although he has not gone into detail. Utico previously said that its cash injection into Hyflux will be funded by a mixture of debt and equity. While Utico is planning an initial public offering in two years, it will not depend on its proceeds to fund the rescue, Mr Menezes said, adding: "This deal is funded." On Thursday night, he met with a "reflective sample" of around 60 of Hyfluxs retail perpetual and preference shareholders through the assistance of the Securities Investors Association (Singapore) or Sias, Mr Sandrasegara said. Mr Menezes said he was "well received" at the three-hour meeting, and that Sias will share more on the options Utico has put forth soon. "I can only say that at the end of the meeting there was applause," he added. Related Stories:

        
Hyflux is in talks with at least seven investors for a potential cash infusion.

Related Story Chinese power service provider eyeing Hyflux assets

        
 In asking for the extension,  Hyflux said it has made progress with its restructuring efforts including holding weekly restructuring meetings with various creditor groups, as well as in its discussions with various potential investors.

Related Story Hyflux gets 2-month extension on debt moratorium, in talks with more potential investors

        
The offer comes three days before a High Court hearing on May 29 on whether debt-ridden Hyflux will get a further reprieve from creditors.

Related Story Utico dangles offer of part cash redemption to Hyflux junior creditors

        
Hyflux made the clarifications on the eve of a pivotal High Court hearing on whether it will get further reprieve from creditors.

Related Story Hyflux clarifies no conclusive numbers or percentages for small investors discussed with Utico

        
Ultra filtration membranes at the Tuaspring desalination plant, that is part of the Tuaspring Integrated Water and Power Plant that had cost Hyflux $1.05 billion.

Related Story PUB to start upgrading works at Tuaspring desalination plant; rehires 36 workers

        
Tuaspring Desalination Plant, one of the desalination plants built by water treatment firm Hyflux.

Related Story Hyfluxs fall from darling of the entrepreneurial scene to troubled firm: 5 must-reads

        
National water agency PUB says that the takeover of the Tuaspring desalination plant from Hyflux is to safeguard Singapores water security.

Related Story PUB takes over Tuaspring desalination plant from Hyflux

        
Utico was hoping to enter a deal with Hyflux, which would allow them to fix the problems at Tuaspring desalination plant that led to PUBs decision to take it over.

Related Story PUB rejects Utico request to delay May 18 takeover of Tuaspring desalination plant

        
Hyflux, in a Singapore Exchange announcement, said the investor is one of the top 10 largest desalination companies globally.

Related Story Hyflux announces third potential investor, with non-binding offer for its overseas assets Topics: HYFLUX DEBT RESTRUCTURING/INSOLVENCY More Share Tweet Linkedin Pin Google+ Reddit Print Permalink: http://str.sg/ovQk Copy