Hyflux: Still in talks with Utico on key terms for restructuring deal

Water in a fountainWater in a fountain

Hyflux said Wednesday it remained in negotiations on the key commercial terms for any restructuring agreement it might sign on Utico’s proposed investment.

The statement, filed to SGX, was in response to a Channel News Asia article Monday, which cited Hyflux lawyer Manoj Sandrasegara of WongPartnership as saying Hyflux and Utico were still in negotiations on a definitive deal.

Manuj had told Singapore’s High Court some of the terms of the deal weren’t “commercially acceptable” to Hyflux and its stakeholders, the CNA report said.

Troubled water infrastructure player Hyflux had said in mid-August it reached a proposed agreement with Utico, the Middle East’s largest full-service utility and developer, for a S$300 million equity investment and a S$100 million loan. The size of the potential investment, including payouts to small security holders, was later clarified, with Utico valuing the total deal at S$535 million.

In late October, Utico had said it would lower its bid for Hyflux to S$200 million to the senior unsecured working group of creditors and a S$100 million shareholder loan if a restructuring agreement wasn’t signed by last week.

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