SINGAPORE (June 15): Hyflux has received another non-binding letter of intent (LOI) for a potential investment in the group by an investor based in China.
In a Friday night filing, Hyflux says the investor is a subsidiary of a state-owned enterprise in the industrial field which works on a global scale to provide comprehensive power services.
“Other fields of expertise of the investor’s holding company include wind and solar energy solutions, nuclear industry, medical technology and agriculture,” says Hyflux.
Hyflux says the investor has signed a non-disclosure agreement and has started preliminary due diligence on the group.
The investor has also reserved its right to terminate discussions in relation to the potential investment if a judicial manager or liquidator is appointed over the company or its subsidiaries.
As of May 30, Hyflux was reportedly in talks with seven different parties for a potential cash infusion, and plans to enter into a binding term sheet with one of them by mid-June.
This after the distressed water company called for a restructuring of its debts last year.
Two potential investors which were named by Hyflux included UAE-based Utico FZE for a $400 million injection and Oyster Bay Fund which has a signed a non-binding letter of intent to invest up to $500 million in the group.
Hyflux will meet stakeholders and draw up terms of a restructuring scheme by the end of June, and aims to apply for leave to convene scheme meetings for creditors in July.
It will then hold scheme meetings in late August, and complete the court-sanctioned restructuring process by September.