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matrix05 04-10-2018 09:50 PM

SGX still haven arrest Ms Lum? How did she raise $500M and burn out so soon?

kehyi4 05-10-2018 02:35 PM


Where is Hyflux now?
Stakeholders have been patient, but company has said little about its chances of remaining a going concern and what it's doing about it.
FRI, OCT 05, 2018 - 5:50 AM

IN June, the Securities Investors Association (Singapore) (SIAS) appealed to stakeholders of troubled water treatment firm Hyflux to give the company the time it needs to try and get its affairs in order ("Saving Hyflux: Stakeholders, patience is vital now", BT, June 18, 2018). We were encouraged by the response - Hyflux was given a six-month extension to a 30-day moratorium from winding-up action that started on May 22 and ended on June 19. That extension will expire in December but before that, on 2.30pm on Oct 8, there will be a court hearing to provide creditors and interested parties with an update of the reorganisation process.

In contrast to our June appeal, which was directed at Hyflux's stakeholders to stay their hand and give the company breathing space, this time SIAS' appeal is to the company itself - to provide a full and frank appraisal on Oct 8 of what has been happening behind the scenes and what are the chances of securing the necessary funding to preserve the company's going concern status.


At the outset, it must be noted that SIAS views Hyflux as worth saving for several reasons. First, Hyflux was for many years a shining example of Singapore Inc, a wholly, homegrown company that sprouted from humble origins to become a world leader in water treatment technology. It is therefore a brand name worth preserving.

Second, even though it is not currently profitable and is suffering liquidity issues, Hyflux has continued to secure new projects - most notably in Oman, Turkey and Iran - which demonstrates there is still demand for its services as well as confidence in the company to deliver on its contracts.

Third, the spillover ramifications of Hyflux being wound up are painful to consider - 2,000 employees, 50,000 retail investors whose savings are on the line and dozens of smaller businesses and sub-contractors who rely on the company for their livelihoods.


Come Oct 8, SIAS notes that stakeholders would have been kept in the dark for almost five months - certainly long enough for anxiety levels to have risen sharply. The only way to help alleviate this is through a thorough and open update and in this regard, SIAS notes the crucial role the Board has to play.

The single most important consideration in the minds of all stakeholders is the progress of negotiations on the sale of Hyflux's main asset, the Tuaspring plant. It is, therefore, absolutely crucial that the directors focus their efforts on Oct 8 to provide meaningful updates.

For example, Bloomberg news agency on Oct 2 reported that SembCorp Industries has been the only party to submit a final bid and that its offer was below Tuaspring's book value. Bloomberg also reported that Keppel Corp did not submit a bid.

We assume that the board is exercising its duty to cast the net as widely as possible in search for investors and buyers for Tuaspring and not focusing only on preferred parties. The best prospect of returns to stakeholders is having many competitive bidders as that's the only way to get the highest possible price.

In short, maximum transparency must be practised so as to provide stakeholders with comfort that the price discovery process for Tuaspring is rigorous and competitive.

It is imperative that the board impress upon the other involved players, such as the banks and offtakers, of what is at stake and the knock-on effect or consequences for the tens of thousands of retail investors. Banks and offtakers should not restrict the sale of any asset to preferred bidders. Since Hyflux has many creditors, some with more clout than others, decisions cannot be made without their buy-in.

Different classes of creditors would only be concerned with their exposure. This mindset, though natural, will be harmful to those lower in the hierarchy. Likewise, for the counterparties to the crucial contract whose agreement is required for any new party to come in and take over, the board must bring to the attention of these parties - banks and offtakers - that beyond their own commercial considerations and legal entitlements, there are people downstream who will be affected.

SIAS hopes that when considering interests of creditors, while giving effect to priorities under contract, the interests of holders of public debt should also be considered, including the 34,000 holders of Hyflux Perpetual and Preference shares securities, whose savings are at stake.

To assist the company with its restructuring and in developing a proposal, SIAS has put in place a steering committee with the necessary legal and financial advisors. This is to ensure interests of all stakeholders are taken into account and not just the secured bank lenders, and ensuring that the retail investors have their say on the restructuring. Hyflux has accepted SIAS' recommendation that these committees engage top-notch legal and financial advisors and to bear the costs.


It is hoped that Hyflux will make even greater effort at sharing information on key aspects of the process as it is ongoing. Various stakeholders have reached out to SIAS to say they are only able to see limited information on the ongoing discussions for the restructurings. SIAS understands there was a court filing on Sept 21, 2018 to update on the progress of the restructuring, where stakeholders were provided relevant information. SIAS urges Hyflux to be as transparent as possible in any ongoing discussions or public sale process for its assets.

Given the importance of Tuaspring (almost a third of the Group's assets net book value) details of the sale process of the largest asset of Hyflux group should be made available. The only information so far is that a number of bids has been received. There has been no explanation of the process carried out and the efforts made to secure more bidders. Nor is there clarity yet on how many interested parties were approached and how those who advanced to the bidding stage were selected.

The importance of a rigorous bidding process for this key asset cannot be overstated. A limited number of bidders won't incentivise competitive bids, resulting in depressed returns to stakeholders.

On Oct 8, SIAS hopes the company will return the courtesy afforded to the company by its stakeholders with a full and open update. The overriding goal has to be disclosures that provide as many answers as possible and offer reassurance to alleviate the still-high anxiety among stakeholders. Hyflux must continue to engage with stakeholders in a timely manner to achieve this.

Finally, given the strategic importance of water and power generation to Singapore, SIAS hopes that the ultimate buyer will have strong links to this country, but by the same token it is important that the Board cast their net as wide as possible to maximise the chances of success.

The writer is the founder, president and CEO of Securities Investors Association (Singapore) (SIAS)

kehyi4 05-10-2018 02:36 PM


Hyflux says still in talks on possible Tuaspring sale, strategic investment; no details given

SINGAPORE - Hyflux remains actively engaged in discussions with potential investors in its Tuaspring water and power project and in the rest of the group, but has not committed to any particular option and remains open to considering various opportunities, the water and power infrastructure company announced on Friday (Oct 5) during the midday trading break.

Hyflux, which is seeking to restructure its debts through the Singapore courts, said that it has parallel and concurrent processes to consider, first, the divestment of Tuaspring; and, second, strategic investments in Hyflux itself.

"These processes run in parallel and are at the stage where the company is actively engaged in discussions with potential investors in Tuaspring and/or the rest of the Hyflux group," the company said.

"The company has not committed itself to any particular option or any of the proposals received at this point in time and remains open to considering various opportunities. Any proposals received are also subject to approval by the relevant authorities where required."

But Hyflux said that it cannot comment on specific details of discussions at this time due to confidentiality requirements and the need to protect the company's interests in ongoing talks.

The company's comments came amid heightened speculation about Hyflux's attempts to raise capital. The company is expected to give an update to the Singapore court next Monday.

Bloomberg, citing sources, had reported earlier this week that Sembcorp Industries was the only party to submit a final bid for Tuaspring, a massive desalination project that Hyflux is hoping to sell. The report said that Keppel, the only other candidate that was approved by the PUB, Singapore's national water agency, had declined to submit a binding bid.

The Bloomberg report also said that Hyflux could consider overseas investors that are interested in buying over the entire Hyflux business, but that regulatory approval could pose a hurdle to those plans.

Hyflux neither affirmed nor denied Bloomberg's report, but cautioned stakeholders against relying on third-party information sources that could be incomplete or inaccurate.

Trading in Hyflux shares is currently suspended.

Mancunian2 05-10-2018 03:04 PM

Bloomberg often spreads unfounded rumours

eg. last year, they reported twice that HNA no funds to complete the CWT privatisation offer. In the end, Bloomberg was proven to be CSB

Mergui219067 05-10-2018 03:32 PM

You are very confused.
SGX has no such authority.
And there is no evidence of a crime.


Originally Posted by matrix05 (Post 116862636)
SGX still haven arrest Ms Lum? How did she raise $500M and burn out so soon?

weng0202 05-10-2018 04:43 PM

Talk so much and so long, got conclusion already or not.

dork32 05-10-2018 05:05 PM


Originally Posted by Mergui219067 (Post 116873249)
You are very confused.
SGX has no such authority.
And there is no evidence of a crime.

maybe joe low should learn from her

Toni90 05-10-2018 09:51 PM

Hyflux tried to sell water plant in China also can not. Donít know why they always have water plants in those strange countries.

Geeezz 05-10-2018 09:51 PM


Originally Posted by weng0202 (Post 116874361)
Talk so much and so long, got conclusion already or not.

bookmarked. huan a conclusion fr this also:s12:

kehyi4 09-10-2018 09:01 AM


Hyflux pins hope on finding strategic investors as creditors grow skittish

SINGAPORE - As the clock ticks down to the Dec 19 deadline when Hyflux's debt moratorium will be lifted, the survival of the insolvent water project developer could hinge on whether any strategic investors come through.

WongPartnership partner Manoj Sandrasegara, who represents Hyflux, told a Singapore High Court on Monday (Oct 8) that the company had "spent a lot of time" meeting with strategic investors in September to discuss deal terms. "Hopefully something can be said in November," he said. He mentioned two interested parties, but declined to reveal their identities.

If Hyflux is able to hammer out a deal with potential strategic investors, then it will have visibility over how much of its debts can be paid in full, and the company can start negotiating the terms of a restructuring with creditor groups.

Mr Sandrasegara added: "I know the company has come under some criticism from creditor groups that information disclosure has been slow, but the company has to prioritise things like the stabilisation of the business, preparing data rooms for DIP (debtor-in-possession) financiers, and getting the TuasOne and Qurayyat projects going."

At Hyflux's case management conference on Monday, Justice Aedit Abdullah said that if Hyflux were to ask for the debt moratorium to be extended for a further six months in December, he might need more convincing to extend their lifeline. He said: "I will need very strong reasons because you have had six months and some investors are getting quite skittish given how things are going... Opposition from creditors might be significant at that point."

In response to Justice Abdullah's question on where he sees Hyflux at the end of December, Mr Sandrasegara replied: "On the basis of a wish list, we would like to see a binding term sheet (with a strategic investor) executed subject to a scheme of arrangement with creditors. If we move at great speed and creditors are agreeable, we could have an in-principle agreement that can be put to a vote by creditors... I don't think we can get a scheme signed and sanctioned before the moratorium ends."

Hyflux has previously emphasised the importance of pulling in a strategic investor to give the company a cash injection in exchange for control. Hyflux is in the EPC (engineering, procurement and construction) business, where cash is needed to win new projects and work on them.

Meanwhile, the sale process for Tuaspring is ongoing. Maybank, Hyflux's largest secured lender, had earlier agreed to give it until Oct 15 (next Monday) to find a buyer for the Tuaspring integrated water and power plant and ink a binding purchase agreement.

Reportedly, Sembcorp Industries was the only party to submit a final bid for Tuaspring by an Oct 1 deadline. Hyflux has approached national water agency PUB to allow overseas bidders to cast bids as well, Bloomberg reported. However, it is not clear yet if Hyflux has received any firm interest from overseas investors.

It remains to be seen if Hyflux accepts Sembcorp's bid for Tuaspring (which Bloomberg reported is not sufficient to cover the debts owed to Maybank). Other possible outcomes are that the contractual deadline between Maybank and Hyflux gets extended beyond Oct 15, or Maybank puts Tuaspring under receivership. Lawyers for PUB were present at the case conference on Monday, though they remained silent throughout.

The next hearing for Hyflux will take place on Oct 31, at which time an interim update will be given on the progress of its restructuring.

Toni90 09-10-2018 02:58 PM

So now selling Tuaspring is still not enough. Need to sell more.

dork32 09-10-2018 04:33 PM

this is a para posted on channel news asia

It was revealed at the status conference - which was part of the courtís requirement for granting the firm a six-month moratorium in June - that Hyflux has been unable to pay rent on two offices over the past month, according to lawyers acting on behalf of HSBC Institutional Trust Services, the trustee of Ascendas Real Estate Investment Trust.
Read more at https://www.channelnewsasia.com/news...pring-10804286

rental also cannot pay. you think there is hope for the company?

kelvin4ever 09-10-2018 05:15 PM

Any lawyer in here who purchase Hyflux 6% Perpetual Securities in Apr 2016?
What is the winning possibility to launch a class action lawsuit for them provide misleading data for the launch?

Thanks in advance!

Jukhta 10-10-2018 08:33 AM

Can anyone explain what happens to buyers of the 6% perpetual bond?

dork32 10-10-2018 08:44 AM


Originally Posted by kelvin4ever (Post 116941607)
Any lawyer in here who purchase Hyflux 6% Perpetual Securities in Apr 2016?
What is the winning possibility to launch a class action lawsuit for them provide misleading data for the launch?

Thanks in advance!

even if you win, so what? they got no money left to pay you. the most is ceo go jail for starting a ponzi investment scheme.

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