HWZ Forums

Login Register FAQ Mark Forums Read

Hyflux 6% Perpetual Securities

Like Tree300Likes
Reply
 
LinkBack Thread Tools
Old 18-02-2019, 02:05 PM   #2086
Master Member
 
V_for_Vanilla's Avatar
 
Join Date: Mar 2006
Posts: 3,501
Article basically conclude those big boys will have higher voting power. I rem in recent 2016 issue one bidded $1million to buy e perps
They are organised and have lawyers etc to advise and act for them. The perp and pref group is basically retail lay persons with no such representation and no one to fight for them.
V_for_Vanilla is offline   Reply With Quote
Old 18-02-2019, 02:45 PM   #2087
Arch-Supremacy Member
 
cuntzbuster's Avatar
 
Join Date: Aug 2005
Posts: 20,092
Unsecured claims 16.7/25.7 = 65%
Perpetual claims 35%
71% of all perpetual need to vote against scheme to fail it.
When devising the scheme, they just need to please those unsecured claims to get it pass

Sent from Pocoyo fan club using GAGT
cuntzbuster is offline   Reply With Quote
Old 18-02-2019, 02:57 PM   #2088
Arch-Supremacy Member
 
arctician's Avatar
 
Join Date: Oct 2003
Posts: 14,010
This means 100 pax with less than $10k holding is less influential than 1 pax who has $1million in holdings. Thats why u have 50% vote threshold by number and 75% by value. So veto also no use.
arctician is offline   Reply With Quote
Old 18-02-2019, 06:59 PM   #2089
Senior Member
 
Join Date: Jul 2010
Posts: 1,086
My holdings are small so take back so little also no use. I already treat it as a complete loss.
weng0202 is offline   Reply With Quote
Old 19-02-2019, 02:08 PM   #2090
Senior Member
 
Join Date: Dec 2007
Posts: 1,177
The longer it drags, the lower the return.

Company employees will continue draw salary whilst the company continue making loss.
Agree. Presently, TuasSpring is losing about SGD$8 mil per month in operation losses. It is unlikely that the situation will turn better unless the wholesale electricity price has improved. This will never come until sometime in the future. This is because Hyflux has priced TuasSpring with a pricing strategy that selling of electricity to the National Grid will help to improve the revenue.

https://tinyurl.com/y3q9vznj

Original plan was that the bond holders end up having nothing after the restructuring. To hope to get more is something quite far fetching.
pcuser123 is online now   Reply With Quote
Old 19-02-2019, 05:44 PM   #2091
Senior Member
 
Join Date: Jul 2010
Posts: 1,086
Realistically will get back lesser since I'm sure the share prices will tank once it resumes trading.
weng0202 is offline   Reply With Quote
Old 19-02-2019, 06:41 PM   #2092
Arch-Supremacy Member
 
MikeDirnt78's Avatar
 
Join Date: Jun 2002
Posts: 17,658
Salim will have to improve its offer if they want the perp and pref holders to bite. Current offer is outright rotten and more than anything an insult.
He is not a desperate buyer to buy.

Hyflux is the one who is desperate.

So you must understand who has the bargaining power.
K|muRa^84 likes this.
__________________
Eat | Live | Punk Rock | Save | Invest | Finance | Fitness | Geneco | Tech
You can ask me anything!
MikeDirnt78 is offline   Reply With Quote
Old 19-02-2019, 09:11 PM   #2093
Senior Member
 
kehyi4's Avatar
 
Join Date: Aug 2010
Posts: 1,307
https://www.channelnewsasia.com/news...5-for-11258302

SIAS to hold investor-only town hall session on Feb 25 for Hyflux perpetual, preference shareholders
Updated: 19 Feb 2019 07:50PM

SINGAPORE: The Securities Investors Association Singapore (SIAS) will hold an “independent” town hall session next Monday (Feb 25) for retail investors of Hyflux’s perpetual securities and preferences shares to voice their concerns.

The investor-only session will be held at the Nexus Auditorium located along Koek Road from 6.30pm to 9pm. SIAS-appointed independent advisors from Drew & Napier and PricewaterhouseCoopers (PwC) will attend the session, SIAS president David Gerald told Channel NewsAsia on Tuesday (Feb 19).

Apart from the town hall session, three separate briefings for the same group of mom-and-pop investors will be held at the PwC’s office from 7pm to 8.30pm on Feb 20, as well as 6pm to 7.30pm on Feb 21 and Feb 22 respectively.

“Security holders are welcome to provide feedback on the Hyflux’s restructuring during the discussion group sessions,” according to an email sent out by SIAS on Tuesday evening.

Interested investors will have to register with SIAS with their names, contact numbers, email addresses and proofs of holdings. For the town hall session, there will be a registration fee of S$10 “to cover the cost of organising”.

Separate meetings for Hyflux’s medium-term noteholders are in the works, added the investor advocacy group.

Channel NewsAsia had earlier reported that SIAS will be organising investor-only town hall sessions, after receiving a petition from a retail perpetual security and preference shareholder.

This group of 34,000 people are ranked near the bottom of the priority list – above ordinary shareholders but below other senior unsecured creditors – and have been particularly worried about steep haircuts.

Hyflux's announcement of its restructuring plan over the weekend confirmed their earlier fears.

According to figures disclosed by the embattled water treatment firm, holders of perpetual securities and preference shares are facing an implied recovery rate of only 10.7 per cent of their investments.

This includes an additional “top-up” of 1.26 per cent from Ms Lum and the company’s board of directors, who had earlier said they would be contributing their stakes in the company, as well as entitlements from the restructuring, for redistribution.

At least one investor is planning to attend the upcoming town hall session to show support.

Describing retail investors as “helpless” and being “sacrificed” to give Hyflux a new lease of life, Ms Violet Seow said: “We have 34,000 retail investors but the majority seems to be missing in action. I am worried that they may not know that they are about to lose their investments with the restructuring.”

Hyflux plans to hold its scheme meeting on Apr 5 if it gets the court’s approval this Thursday.

To pass, the scheme will need to be approved by at least 50 per cent in number and 75 per cent in value of each creditor class at the scheme meeting.

Source: CNA/sk
kehyi4 is offline   Reply With Quote
Old 20-02-2019, 07:35 AM   #2094
Arch-Supremacy Member
 
cuntzbuster's Avatar
 
Join Date: Aug 2005
Posts: 20,092
https://www.sias.org.sg/edm/2019/Hyflux/Feb/
cuntzbuster is offline   Reply With Quote
Old 20-02-2019, 09:21 AM   #2095
Arch-Supremacy Member
 
arctician's Avatar
 
Join Date: Oct 2003
Posts: 14,010
actually i am not sure whats the point of the townhall unless an independent solicitor can advise on plan of action that can increase recovery rate.
__________________
I am a buibui sandsurfing in the wilds of sahara
arctician is offline   Reply With Quote
Old 20-02-2019, 09:45 AM   #2096
Arch-Supremacy Member
 
plexxor's Avatar
 
Join Date: Aug 2006
Posts: 23,323
actually i am not sure whats the point of the townhall unless an independent solicitor can advise on plan of action that can increase recovery rate.
show that they listen to your concerns lol

Sent from The Matrix using GAGT
plexxor is offline   Reply With Quote
Old 20-02-2019, 10:01 AM   #2097
Arch-Supremacy Member
 
arctician's Avatar
 
Join Date: Oct 2003
Posts: 14,010
for those attending, dont make it into a complaint session because its not good to wallow on self pity with one another

Just focus on one thing since there are representatives from Drew & Napier and PricewaterhouseCoopers (PwC). Seek professional advice from PWC and see if there is any form of misrepresentation in their financials or NAV, or misalignment of interests since working capital is used to fund dividend of shareholders. If there is a slight chance, sound out D&N and see if they can file a case for us pro brono, and take a % fee for additional amount recovered at the end. Since we are only recovering 3% cash, i am sure perpholders will be willing to take the chance on liquidation.

If this is feasible perpsholders can veto the deal and potentially be ahead of secured and MTN holders.

sgdividends please note thank you.
__________________
I am a buibui sandsurfing in the wilds of sahara
arctician is offline   Reply With Quote
Old 20-02-2019, 10:18 AM   #2098
Arch-Supremacy Member
 
arctician's Avatar
 
Join Date: Oct 2003
Posts: 14,010
KPMG is auditor of hyflux, so i think D&N and PWC are independent which is good.

I think this townhall interests of all stakeholders are aligned. If PWC and D&N are allowed to take a % fee they will be incentivised to fight for interests of perp or perpetual holders, and if we are ahead of secured holders we can potentially recover much more.

Since we can only recover 3% cash there is only upside and no downside, risk reward is good.
__________________
I am a buibui sandsurfing in the wilds of sahara
arctician is offline   Reply With Quote
Old 20-02-2019, 10:30 AM   #2099
Master Member
 
V_for_Vanilla's Avatar
 
Join Date: Mar 2006
Posts: 3,501
KPMG is auditor of hyflux, so i think D&N and PWC are independent which is good.

I think this townhall interests of all stakeholders are aligned. If PWC and D&N are allowed to take a % fee they will be incentivised to fight for interests of perp or perpetual holders, and if we are ahead of secured holders we can potentially recover much more.

Since we can only recover 3% cash there is only upside and no downside, risk reward is good.
PWC is SIAS's financial consultant. They are on SIAS's side. D&N is the legal appointed and paid for by Hyflux to act for the perp and pref group. You decide how independent they are.
V_for_Vanilla is offline   Reply With Quote
Old 20-02-2019, 10:38 AM   #2100
Arch-Supremacy Member
 
arctician's Avatar
 
Join Date: Oct 2003
Posts: 14,010
just suggesting on best course of action. Otherwise townhall serves no purpose if its a complaint session.
__________________
I am a buibui sandsurfing in the wilds of sahara
arctician is offline   Reply With Quote
Reply
Important Forum Advisory Note
This forum is moderated by volunteer moderators who will react only to members' feedback on posts. Moderators are not employees or representatives of HWZ. Forum members and moderators are responsible for their own posts.

Please refer to our Terms of Service for more information.


Thread Tools

Posting Rules

Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are On