Hyflux: PUB to extend Tuaspring deadline for fixing service default

Tuaspring Integrated Water & Power Project, Singapore. Source: HyfluxTuaspring Integrated Water & Power Project, Singapore. Source: Hyflux

Hyflux said on Friday that Singapore’s national water agency PUB has given its Tuaspring desalination plant an extension to fix its service default, potentially easing concerns the issues would scuttle the water infrastructure company’s restructuring deal.

Earlier this month, PUB issued Hyflux’s desalination plant, Tuaspring, a default notice and said it would exercise its right to terminate its water purchase agreement (WPA) and take over the plant if contractual obligations aren’t met.

Hyflux received a letter from PUB Friday that said the default cure period would be extended to 30 April from 5 April, the company said in a filing to SGX on Friday.

However, it added that the extension would be “immediately rescinded” if shareholders and creditors don’t approve the restructuring deal, if the High Court doesn’t allow the deal, or if the restructuring deal is terminated for any reason.

The default notice had appeared set to imperil Hyflux’s restructuring plan as it would have allowed PUB to acquire the desalination plant. That would have allowed SM Investments to back out of its planned investment into the company.

The default notice had appeared set to imperil Hyflux’s restructuring plan as it would have allowed PUB to acquire the desalination plant. That would have allowed SM Investments to back out of its planned S$530 million investment for a 60 percent stake in Hyflux, which had filed for court protection in May.

Hyflux’s creditor meeting is scheduled for 5 April, while a meeting of creditors of Hyflux Membrane Manufacturing (S), Hydrochem (S) and Hyflux Engineering are set for 8 April, the filing said.

The extraordinary general meeting (EGM) for shareholders to vote on the restructuring has been set for 15 April, the filing said.

In a separate filing on Friday, Hyflux said it has received approval-in-principle from SGX to list the up to 18.85 million shares which will be issued if the restructuring deal is approved.

 

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