Hyflux granted one-month extension of debt moratorium instead; new deadline is May 24
SINGAPORE (Apr 25): Hyflux International, the debt-laden water company facing potential liquidation, has been granted a one-month extension of its debt moratorium to May 24 although it had asked for an extra three months.
“Arguments for further extensions can be made either on May 7 or 13. Carve-out arguments put forth by some creditors seeking judicial management will be heard on May 7. If approved, the JM hearing will be on May 13,” local media reported.
Explaining his decision to provide a shorter moratorium, the judge said that the moratorium under section 211B was meant to give a company “breathing space” and not for it to “continue indefinitely”, according to the reports.
Hyflux this morning revealed it is engaging with potential overseas investors who is interest in the group’s business and assets which includes parties that would have synergy with the group.
In particular, Hyflux says it has received a non-binding letter of intent for an injection of $400 million from the developer and owner and of water and power utilities with a reputable track record who is based in the Middle East.
The search for another white knight follows the termination of the $530 million rescue plan agreed upon with potential suitor SM Investments earlier this month.
See: Hyflux gets $530 mil lifeline from Indonesia's Salim and Medco groups
See also: Hyflux rescue bid by SMI falls through amid conflicting statements
“Discussions with this party are based on a possible injection of S$400 million to be used for equity and working capital purposes and possible urgent interim funding. A non-binding letter of intent has also been issued by this party,” says Hyflux in a Thursday morning filing.
Meanwhile, Hyflux also announced that a group of unsecured banks have on Wednesday applied to the High Court of Singapore to seek leave to file applications for Hyflux and Hydrochem to be placed under judicial management or interim judicial management.
The banks are Mizuho Bank, KfW IPEX-Bank GmbH, Bangkok Bank, BNP Paribas, CTBC Bank Co, The Korea Development Bank and the Korea Development Bank, Singapore Branch
