Hyflux retains investor interest amid new troubles

摘要

Financially troubled Singaporean developer Hyflux has been hit by new problems - including a criminal investigation into its statements and stock exchange disclosures, and a desal O&M termination notice - in its quest for a restructuring deal. It is now considering its options. More than two years after trading in Hyflux shares was halted on the Singapore stock exchange after the debt-laden company sought court protection, a rescue deal has yet to be completed. The company's second attempt at a restructuring agreement, with UAE private utility company Utico, expired in late May with the lapse of the agreement's long-stop date. A new time-limited offer was then put forward by Utico in which equity in either Hyflux or Utico was offered to creditors instead of cash. This offer expired on 4th June, and confusion has subsequently arisen over what is now on the table. Utico has confirmed an extension to 30 June, which it claims refers to the restructuring agreement rather than the later offer, with a list of conditions attached. Hyflux believes the restructuring agreement has lapsed and also maintains it will need a longer extension than 30 June to approve any offer. At the same time, the Singaporean authorities have announced a criminal investigation into Hyflux and its directors over suspected false disclosures and accounting compliance (see timeline, facing page). The probe is understood to relate to disclosures about the Tuaspring integrated water and power project and its accounting between 2011 and 2018.