Hyflux 6% Perpetual Securities

weng0202

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What is wrong to get the extension?
This Utico was obviously pressuring to close a good deal.
The court also sympathises as many shareholders are retail.

Only some like you are 兴灾乐祸.

While they may be trying to get the best deal, your money is also stuck there and they are still burning money to keep everything going. Best is to take the best deal and move on.

BTW, I'm also one of their investor and I have already prepared myself to getting nothing back.
 

dork32

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they are still burning money to keep everything going.

this is a very good statement. with the current situation, i am quite sure that hyflux cannot generate any more income.

the people that are dragging the case continues to draw salary. the building continues to incur rental and cost.

the longer this thing drags, the less hyflux will be worth when it liquidates.

if the investor is going to get nothing from liquidation, he would rather that it goes down quickly such that the people the caused the ship to sink will not get more benefits from it.
 

kehyi4

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Does anyone still care?

CNA: SIAS says it is concerned about ‘lack of finality on Utico’s offer’ for Hyflux
Updated: 20 Nov 2019 04:00PM

SINGAPORE: The Securities Investors Association Singapore (SIAS) has said it is “seriously concerned” about the “lack of finality” on Utico’s offer for home-grown water treatment firm Hyflux, with the Middle Eastern investor repeatedly introducing changes to the deal at the last minute.

A press statement issued by SIAS chief David Gerald on Wednesday (Nov 20) read: “SIAS is concerned that while Hyflux, together with the various creditor groups, have been working within the timelines as required by the court to try and work out a deal acceptable to everyone, some deal changes have been repeatedly introduced at the eleventh hour by the investor.”

The investor advocacy group added that it hopes a deal – an outcome which would benefit many stakeholders, including retail investors – would not be scuttled by “such strategies designed to achieve advantages for one party only”.

“SIAS urges all parties, including the investor to continue negotiations with a view to achieve a commercially acceptable outcome for all stakeholders involved including in particular, the holders of the perpetual securities and preference shares.”

CNA has reached out to Utico for comments.

The United Arab Emirates utility firm has said in July that it is willing to take an 88 per cent stake in Hyflux through S$300 million in equity injection as well as a S$100 million shareholder loan.

It also intends to offer the cash equivalent of a 4 per cent stake in the enlarged Utico group, plus additional cash to the holders of preference shares and perpetual securities.

Both parties have been in talks since and despite repeated deadlines issued by Utico, a definitive agreement has not been signed.

Hyflux's lawyer told the High Court earlier this month that some of the terms in the agreement are not “commercially acceptable” to the firm and its stakeholders.

The fallen water treatment giant, whose restructuring journey has been marked by several twists and turns thus far, has court protection from its creditors until Dec 2.

A High Court hearing has been scheduled on Nov 29 to consider any further applications or extensions of the debt moratorium.

Source: CNA/sk
 

matrix05

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ultimatum is on 2/12/2019.

During the case management conference, Justice Aedit Abdullah stressed that Hyflux’s debt moratorium, which is slated to expire on Dec 2, cannot be extended unless there is a "concrete proposal on the table" so that there is "prospect of a plan being put forward".
Read more at https://www.channelnewsasia.com/new...han-48-hours-sign-restructuring-deal-12050228

https://www.channelnewsasia.com/new...han-48-hours-sign-restructuring-deal-12050228

One more week. OL is going to pull up another white knight story on the 11th hr?
 

kehyi4

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ST: Hyflux finally inks $400m rescue deal with Utico

SINGAPORE - Hyflux has finally reached a restructuring agreement with Utico that will see the United Arab Emirates utility take a bigger stake than earlier envisaged in the embattled water treatment firm in a $400 million rescue deal.

The announcement on Tuesday afternoon (Nov 26) comes just days before a High Court hearing scheduled on Friday, which will determine if Hyflux can get an extension on its restructuring moratorium, set to expire on Dec 2.

Under the new deal, Utico and co-investors will take a 95 per cent stake in Hyflux through a $300 million equity injection for senior unsecured creditors, as well as a $100 million shareholder loan.

The original proposed rescue package involved the Middle Eastern firm taking an 88 per cent stake in Hyflux through a $300 million equity injection for senior unsecured creditors, as well as a $100 million shareholder loan.

Utico is a developer of water and power infrastructure in the Middle East region.

It is also the largest full service private utility company in the UAE.
 

kehyi4

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New terms?
(b) in relation to the holders of the Debt Securities (the "Debt Securities Holders"), each
Debt Securities Holder can elect to receive, either:

(i) Option 1: an upfront cash payment of an amount equal to the lesser of (A)
S$1,500 and (B) 50% of the aggregate value of the Debt Securities held by
such Debt Securities Holder; or

(ii) Option 2: a cash amount equal to the lesser of (A) S$1,500 and (B) 50% of
the aggregate value of Debt Securities held by such Debt Securities Holder, to
be paid out over two (2) years in five (5) equal instalments commencing from
the Completion Date, together with interest of 1.25% per annum on such
amounts which remain outstanding. For the avoidance of doubt, the principal
amounts payable under Option 1 and the preceding sentence of this Option 2
will be capped at S$50,000,000 in aggregate. Further, Debt Securities Holders
who elect this second option will also be entitled to receive an additional cash
amount (on a pro rata basis amongst the Debt Securities Holders who have
selected this second option only) (the "Additional Cash Amount") equal to:

(A) if shares of Utico (or an affiliate thereof) (the "Listco") are listed within
two (2) years of the Completion Date (the "Listing End Date"), the
higher of: (1) the cash equivalent of 4.0% of the issued share capital
of the Listco at the listing price and (2) S$50,000,000; or

(B) if such listing does not occur by the Listing End Date, S$50,000,000,

in each case, multiplied by a fraction represented by the value of the Debt
Securities Holders who have selected this second option as the numerator and
the total value of the Debt Securities Holders as the denominator, for the full
and final settlement of the Debt Securities. The Additional Cash Amount will
be paid out over two (2) years in five (5) equal instalments commencing from
the Listing End Date, together with interest of 1.25% per annum on such
amounts which remain outstanding.
 

starbugs

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This agreement is poorly worded, but I believe the $50m cap is non-governing and intended to put a dollar figure on how much the perps/prefs holders are getting back. There are about 34,000 holders of the securities. At $1,500 (or less) to be paid to each investor, the principal payout is about there: $50m.
 
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kehyi4

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(b) in relation to the holders of the Debt Securities (the "Debt Securities Holders"), each
Debt Securities Holder can elect to receive, either:

(i) Option 1: an upfront cash payment of an amount equal to the lesser of (A)
S$1,500 and (B) 50% of the aggregate value of the Debt Securities held by
such Debt Securities Holder; or

(ii) Option 2: a cash amount equal to the lesser of (A) S$1,500 and (B) 50% of
the aggregate value of Debt Securities held by such Debt Securities Holder, to
be paid out over two (2) years in five (5) equal instalments commencing from
the Completion Date, together with interest of 1.25% per annum on such
amounts which remain outstanding. For the avoidance of doubt, the principal
amounts payable under Option 1 and the preceding sentence of this Option 2
will be capped at S$50,000,000 in aggregate. Further, Debt Securities Holders
who elect this second option will also be entitled to receive an additional cash
amount (on a pro rata basis amongst the Debt Securities Holders who have
selected this second option only) (the "Additional Cash Amount") equal to:

(A) if shares of Utico (or an affiliate thereof) (the "Listco") are listed within
two (2) years of the Completion Date (the "Listing End Date"), the
higher of: (1) the cash equivalent of 4.0% of the issued share capital
of the Listco at the listing price and (2) S$50,000,000; or

(B) if such listing does not occur by the Listing End Date, S$50,000,000,

in each case, multiplied by a fraction represented by the value of the Debt
Securities Holders who have selected this second option as the numerator and
the total value of the Debt Securities Holders as the denominator, for the full
and final settlement of the Debt Securities. The Additional Cash Amount will
be paid out over two (2) years in five (5) equal instalments commencing from
the Listing End Date, together with interest of 1.25% per annum on such
amounts which remain outstanding.

what does Cap at $50 millions means?

Sent from Amazon using GAGT

This agreement is poorly worded, but I believe the $50m cap is non-governing and intended to put a dollar figure on how much the perps/prefs holders are getting back. There are about 34,000 holders of the securities. At $1,500 (or less) to be paid to each investor, the principal payout is about there: $50m.
tl;dr
(1) if you hold 3k or more, you get $1,500. If you hold less than 3k, you get 50% of what you hold
(2) if you choose Option A, you get cash upfront
If you choose Option B, you get paid out over 2 years in 5 instalments, but to sweeten the delayed payout, they throw in: a) 1.25% interest on outstanding payments, and b) the cash equivalent of 4.0% of the issued share capital of the Listco at the listing price capped at S$50,000,000, divided by the number of people who choose Option B, in other words: at least $1,500 per holder, possibly more

tl;dr2: get paid $1,500 now, or bet that the new company will somehow make it and get paid $3,000 or more ("Double Your Money!") over 2 yrs
 
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Geeezz

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omg wts, end up max take back 1.5k nia. if i invest 100k in the end only gt 1.5k if i choose option A?:eek:
 

weng0202

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End up Utico got a better deal? I will choose cash upfront. Dunno who wants to wait another 2 years and bet on them to succeed.
 

NewInvestor

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OMG. This just shows you the danger of bond investing.

Why don't invest in REITs instead. At least you can see the NAV.
 

plexxor

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The PNP holders who opt for upfront payment will be entitled to receive up to 50 per cent of the value of their debt securities holdings, capped at $1,500.
Those who opt for deferred payments, which will be paid in half-yearly intervals over four years, will be entitled to receive up to 50 per cent of the value of their debt securities holdings, capped at $1,500. In addition, they will also receive a pro rata share in an additional cash payout.
In the instance where all the PNP holders elect the deferred payment option, the quantum of the additional cash payout will be $50 million.

Sent from Samsung SM-A705MN using GAGT
 
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