Hyflux said Thursday it was in talks with potential overseas investors, including discussions with a Middle East-based entity over the possible injection of S$400 million.
The investment would be used for equity and working-capital purposes as well as possible urgent interim funding, Hyflux said in a filing to SGX; it added the party has issued a non-binding letter of intent.
The Middle Eastern party is a developer and owner of water and power utilities with a reputable track record, Hyflux said.
The announcement followed a Monday statement from David Gerald, president and CEO of Securities Investors Association (Singapore) or SIAS, saying there was a “credible plan” that would leave the senior unsecured debt holders and perpetual security holders “much better off” than in a liquidation.
Gerald, who said he had met with Hyflux Executive Chairman and CEO Olivia Lum, other board members and corporate advisers, added that he was told the new plan would require at least three months.
SIAS has been facilitating talks between stakeholders and the company.
In addition, Hyflux said Thursday a group of unsecured banks applied to the Singapore court on Wednesday to alter the moratoriums on creditor actions so they can file applications for the company and Hydrochem (S) to be placed under judicial management.
The banks were Mizuho Bank, KfW IPEX-Bank, Bangkok Bank, BNP Paribas, CTBC Bank, The Korea Development Bank and the Korea Development Bank’s Singapore Branch, it said.