Hyflux 6% Perpetual Securities

arctician

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when i was in govt, i only wk one quarter year max for full year of salary, its a chill place to relax but it erodes whatever potential you have inside u. i personally will not recommend a govt job.
 

revhappy

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U r rich even in EDWM standards! Ur right... 250k per bond is the minimum subscription... but u have more than 10... so that still makes u rich! Many ppl can't even afford 1 even if they wanted to put all their eggs into 1 basket!

My networth can buy 3, I mean my entire networth, counting everything, except my kidneys.
 

arctician

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there are 34k investors for $900m worth of perps, means on average each invested around 25k. Some can afford to write off, some cant. I think this group of creditors wont suffer in silence or let Olivia and team off easily, just need to wait for timer to go off
 

havetheveryfun

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there are 34k investors for $900m worth of perps, means on average each invested around 25k. Some can afford to write off, some cant. I think this group of creditors wont suffer in silence or let Olivia and team off easily, just need to wait for timer to go off

even if dont let them off easily, at the most they get jailed or what. money still wont be recovered. unless u think they can earn 900m easily. (which if they could, wouldnt have needed to issue the perps.) they work till they die also wont be able to return the monies at all.

get punished - maybe yes. if hope to get back the monies - forget it.
 

BennyMao

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even if dont let them off easily, at the most they get jailed or what. money still wont be recovered. unless u think they can earn 900m easily. (which if they could, wouldnt have needed to issue the perps.) they work till they die also wont be able to return the monies at all.

get punished - maybe yes. if hope to get back the monies - forget it.

there is no criminal charges. CAD is not involved
 

arctician

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there is no criminal charges. CAD is not involved

One is innocent till proven guilty. Right now perpholders are very passive and AI just want to focus on recovery of their funds. Once the scheme is vetoed and investors have to do a complete writedown, things may get ugly. I am sure many will be happy to write down in full if they can send the accountable party to jail.
 

CSI.Hippo

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Criminal charges only for illegal things. For Hyflux, it's just incompetence. And no punishment got that.
 

kehyi4

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https://www.channelnewsasia.com/news/business/don-t-vote-in-anger-says-sias-as-distressed-hyflux-retail-11288732

‘Don’t vote in anger,’ says SIAS as distressed Hyflux retail investors start petition
Updated: 26 Feb 2019 08:00AM

SINGAPORE: The Securities Investors Association Singapore (SIAS) on Monday (Feb 25) called on retail investors of Hyflux to consider their votes on the embattled company’s proposed restructuring plan “rationally”, as worries mount and a petition calling for the Government's help gets underway.

“I understand that there are many people who have ploughed in their life savings, especially some retirees, but don't vote in anger. Vote rationally,” said SIAS president David Gerald following a town hall session with some 200 mom-and-pop investors of Hyflux’s perpetual securities and preferences shares.

The investor-only meeting on Monday night did not involve any representatives from Hyflux as the investor advocacy group had intended this to be a session for minority stakeholders to raise concerns and clarify doubts with independent advisors from PricewaterhouseCoopers (PwC) and Drew & Napier.

Together with the three briefings held last week by PwC, Mr Gerald said SIAS wants to help retail investors "make an informed decision” ahead of Hyflux's court-approved creditors' meeting on Apr 5.

“Vote with your head and not with your heart,” repeated the SIAS chief, as he brought up how perpetual security and preference shares investors risk getting nothing in a liquidation scenario. “Do you want that? Think carefully.”

Still, Mr Gerald said he understands that retail investors are “anxious” after being allocated the smallest pie in the restructuring proposal, and noted that SIAS-appointed advisors are in discussions with the representatives of other creditor groups.

“But so far, we’ve not been told anything," he said in response to Channel NewsAsia's question.

According to Hyflux’s rescue plan announced on Feb 16, holders of “subordinated” perpetual securities and preference shares, which are lined up at the bottom of the priority list, are facing recovery rates of only 10.7 per cent of their initial investments.

This means for every S$1,000 invested, a perpetual security and preference shareholder will only get back about S$107 in cash and equity, if the restructuring plan is passed – a steep haircut that some have lamented as "too much to swallow" and would rather see Hyflux be liquidated.

As the clock ticks down to the scheme meeting, a group of retail investors have launched a public petition urging for the Government to "take back" Hyflux’s Tuaspring Integrated Water and Power Plant.

Thus far, it has gotten more than 1,500 people to back it up since being launched online about four days ago. Efforts offline have also yielded about 400 signatures.

According to a copy seen by Channel NewsAsia, the petition said given Tuaspring’s status as a “strategic national asset”, an acquisition by the Government will not be a bailout but “rightful” action.

Costing more than S$1 billion to build, the Tuaspring integrated plant was the landmark project that marked water treatment icon Hyflux’s foray into the energy business in 2011.

But it eventually became the “noose” around Hyflux’s neck, as some market observers put it, chalking up losses on the back of depressed electricity prices in an oversupplied local power market.

The losses partially muddied the company’s attempt to find a buyer for the plant – which would be pivotal in repaying mounting debts – despite Tuaspring being put up for sale since early-2017.

Founder-CEO Olivia Lum had also previously said that approval from the local authorities is required “every step of the way” given the plant's value as a strategic water asset in Singapore.

Last October, Hyflux said it was assessing a bid submitted by one of the two interested buyers that have been approved by relevant authorities. But the bid by Sembcorp Industries, according to Bloomberg citing unnamed sources, came in below the plant’s book value of S$1.3 billion.

Since receiving the proposed S$530 million investment from Indonesian consortium SM Investments, Hyflux has said it is no longer actively pursuing a voluntary sale of Tuaspring.

An anonymous investor helping out with the petition told Channel NewsAsia on Monday that such policies, unfortunately, have contributed to the losses at Hyflux's single largest asset, and in turn the company's downfall.

“On Tuaspring losing money, policies have a part to play too with the low electricity prices in an oversupplied market," he said.

The need for Government approval further restricts the number of bidders for the plant, which in turn depressed bidding amounts, he added.

“The petition hopes there can be something done when it comes to Tuaspring," another investor known as Mr Tan chimed in. "The restructuring plan has also been very unfair to the perpetual securities and preference shareholders - maybe the petition can also force Hyflux to answer us."

Source: CNA/sk(mn)
 

focus1974

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lol.. SIAS says think with head.. u want to get nothing or u want to get next to nothing.

no legal challenge no nothing..

just ask investors to get back what u can..
 

arctician

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for a $100k investment one can only get back $3k in cash, this is really derisory

i am sure the perpholders have no issues on vetoing just to let the scheme fail so no one can get back their due, and let incompetent individuals lose their jobs, why let them continuing drawing fat salary and equity at expense of perpholders
 

MikeDirnt78

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for a $100k investment one can only get back $3k in cash, this is really derisory

Did you calculate with your mind or heart? =:p

This means for every S$1,000 invested, a perpetual security and preference shareholder will only get back about S$107 in cash and equity, if the restructuring plan is passed – a steep haircut that some have lamented as "too much to swallow" and would rather see Hyflux be liquidated.
 

revhappy

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I remember people recommending Aspial sometime back, I wonder how they are doing?
 

arctician

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Did you calculate with your mind or heart? =:p

For now i am inclined to vote no. Will see how things develop. Anyway 3% cash 7% equity really nothing much to calculate.

Something is wrong if i vote yes and let mgmt continue drawing fat salaries. 3k i can forgo, i lost 3k but i uphold my ethics and dignity lol
 

soaresb

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Hindsight is 20/20. All the investors were betting that oil prices will stay high.
 

xSieghartx

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Sad to see so many retirees losing their nest eggs, hope it'll be a good lesson for everyone else. Exposure to risks can be controlled.
 

tmkedmw

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For now i am inclined to vote no. Will see how things develop. Anyway 3% cash 7% equity really nothing much to calculate.

Something is wrong if i vote yes and let mgmt continue drawing fat salaries. 3k i can forgo, i lost 3k but i uphold my ethics and dignity lol

Recall in may2018, it went from CD to XD and after XD, hyflux withheld paying 3% for perps. In a way, the current 3% cash offer is iou, and hyflux is actually offering 0 cash in this scheme of arrangement.
 
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