SINGAPORE – Hyflux Group’s judicial managers have filed an application to wind up the beleaguered water treatment company.

Borrelli Walsh said on Friday (June 4) that the decision was taken as a debt restructuring can no longer be achieved and the remaining value of the company is best realised in a liquidation.

The move came after unsuccessful negotiations with an investor for an investment in the entire group and a failed restructuring attempt.

The six bids that have been made for specific assets in Hyflux can be facilitated by winding up the firm, Borrelli Walsh added.

Previous reports had said that all the offers for Hyflux were from overseas companies.

The troubled company entered judicial management last November after more than two years of debt restructuring attempts.

Trading in Hyflux securities was suspended in May 2018, when the court-supervised process began.

The judicial management application was filed by an unsecured working group of 19 banks owed $931 million by Hyflux.

The firm also owes $900 million to around 34,000 retail investors holding its perpetual and preference shares.

In May, the judicial managers’ term of office was extended until July 14 to determine if a potential restructuring was possible.

Hyflux also settled a lawsuit with its former white knight, SM Investments – a tie-up between Indonesia’s Salim Group and Medco Group – in May.

The tussle was over a deposit of $38.9 million that was filed after the $530 million rescue deal was called off in 2019.

Bloomberg reported in March that Hyflux was running out of money after the lengthy restructuring process, with just enough cash to survive five months from Jan 31.

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