SINGAPORE: Hyflux has been given more time, yet again, to execute an agreement with secured lender Maybank regarding the divestment of its single largest asset.
Marking the fourth deadline extension for the embattled water treatment firm, it now has up to and including Jan 31, 2019, to conclude a binding agreement with a successful bidder or investor for the Tuaspring Integrated Water and Power Plant, according to a filing to the Singapore Exchange (SGX) on Monday (Dec 31). The previous deadline agreed by both parties was Dec 28.
The SGX filing added that terms of agreement with Maybank continue to apply in the meantime, which includes the creditor’s right to terminate the collaboration agreement if the new deadline is breached.
Hyflux, which is undergoing a court-supervised debt restructuring, was first given until Oct 15 to secure a buyer for the Tuaspring plant. It later received a two-week extension until Oct 29, followed by a second postponement to Nov 29 and a third delay to Dec 28.
The debt-laden firm was initially looking to divest its billion-dollar desalination and power plant at book value to help repay creditors.
However, since receiving a S$530 million lifeline from two Indonesian investors, Hyflux said it is no longer actively pursuing a voluntary sale of Tuaspring.
According to its website with a frequently asked questions section about the ongoing reorganisation process, the company said it is now working with SM Investments – the consortium comprising Indonesia’s Salim Group and Medco Group – to engage Maybank on this matter.
Hyflux, seen as one of Singapore’s most successful business stories but which has since fallen from grace, will have its next case management conference on Jan 14.
It has also said that it will be holding the second round of town hall meetings with holders of its notes, perpetual securities and preference shares on Jan 18.