Hyflux: Creditor restructuring proposal has not been finalized

Singapore five-dollar note Photo by Leslie Shaffer

Hyflux said on Friday that contrary to recent media articles discussing purported details of a formal restructuring plan, the troubled water-infrastructure player isn’t ready to announce a finalized and definitive restructuring proposal for its creditors.

“Any articles or reports during the interim period which suggest that terms of the restructuring have already taken some definitive shape or form should be regarded as mere speculation and treated accordingly,” Hyflux said in a filing to SGX on Friday.

“Shareholders and holders of the securities of the company are advised to disregard all media speculation and only rely on what is announced by the company. They should exercise caution at all times when dealing in the shares and/or securities,” it added

Hyflux noted it has previously said it would be engaging various stakeholder groups to get their views on a potential scheme of arrangement proposal to creditors.

“This process is currently underway and expected to continue over at least the next one to two months and will progressively extend to the various stakeholder groups,” Hyflux said.

“In the course of such engagement from time to time, it is inevitable that the company will need to sound the various stakeholder groups out to try to understand and assess which options and permutations may be viable, practicable or acceptable,” it added.

Hyflux said that those discussions weren’t binding and the contents of the proposals may vary at each discussion as it works to create a proposal that will get the required levels of support from stakeholders.

In October, consortium SM Investments entered a binding agreement to invest S$530 million for a 60 percent stake in troubled water-treatment and power generation company Hyflux.

In May, Hyflux had filed for court protection, saying the oversupply of gas in Singapore’s market had resulted in depressed electricity prices, which hit earnings in 2017 and drove losses in the first quarter.

In addition, the company said in May that its plan to divest the Tuaspring project in Singapore and the Tianjin Dagang plant in China have taken longer than expected, adding stress to the business.

Hyflux shares have been suspended since May 23.

Get the Shenton Wire morning briefing in your inbox