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Hyflux 6% Perpetual Securities

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Old 26-02-2019, 06:59 PM   #2206
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there is such a thing call criminal negligence,
not sure if hyflux's management was guilty but it can't be far even if they are not
Ask keppel board of compliance

Kol lol
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Old 26-02-2019, 08:01 PM   #2207
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I think morale of the story is always have cut loss strategy. No matter what it is, including govt bonds..
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Old 26-02-2019, 08:31 PM   #2208
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then maybank also can raise same question, why they need haircut when they have TS as collateral, they are supposed to be first in line. Thats why getting approval of scheme wont be easy
You think Mayband need to take haircut?
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Old 26-02-2019, 10:01 PM   #2209
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You think Mayband need to take haircut?
no need. They already said post salim restructuring all the debt will be taken off the books with exception of few secured loans, so i assume they will resume staggered repayment to Maybank. I am guessing hyflux has to file for protection because they defaulted on monthly repayment to maybank.

I see maybank, salim and current management as key beneficiaries from the whole saga, MTN, perps and shareholders are almost wiped out.
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Old 26-02-2019, 10:50 PM   #2210
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‘Don’t vote in anger,’ says SIAS as distressed Hyflux retail investors start petition
Updated: 26 Feb 2019 08:00AM

Source: CNA/sk(mn)
Interesting that SIAS says don't vote out of anger. I would have said don't vote out of fear. Probably both are right.

Assuming the Salim deal is not voted for, what is Maybank going to do? Try to seize the Tuas plant and liquidate Hyflux? If yes, then it is already published elsewhere that the Offtaker can step in to seize the Tuas plant, and will Maybank then be at their mercy how much to receive?

Even if Maybank or the Offtaker seize the Tuas plant what will they do? Incur $80m loss every year in place of Hyflux shareholders? Do they really want that?

Not to mention that upon liquidation all the matters discussed by SIAS regarding whether whether past dividends were rightly paid, may surface in court. Absent liquidation, all that is merely speculative theory because in hindsight, it was rightly decided that the company does not become insolvent as a result of those dividends.

And in liquidation, will Tuaspring set the tone for the 4th and 5th desalination plant bidding process? Will the hurdle investment rate for future plants become higher thanks to a precedent failure? Will Tuaspring be the catalyst for a neighbor seeking higher returns on raw water sales?

If the Salim deal is not voted for, it seems to me the only rational recourse for everyone, whether Offtaker, Maybank or other creditor, is to try and reach another more favorable deal, not liquidate.

Still, there is no guarantee that anyone will do anything rationally, so some risk involved in voting "out of anger".

But it seems to me the more irrational approach in this case, is to vote "out of fear".
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Old 26-02-2019, 10:59 PM   #2211
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SIAS is a joke and not on the side of the retail investors although it portrays itself as such. SIAS and PWC has been going around telling retail investors getting "something is better than nothing". In other words to accept the proposal. It is insulting to suggest if retail investors vote otherwise they are doing so out of anger and not rational.
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Old 26-02-2019, 11:11 PM   #2212
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unfortunately perpholders are mostly retirees who are non financial saavy, i can see the risk reward ratio for maximum recovery is better if i veto it. Even if hyflux really liquidates, an investor with $100k will only lose 3% cash, but hyflux mgmt, secured and MTN risks are much higher. So any perp or pref share holders going to accept?
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Old 27-02-2019, 11:31 AM   #2213
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unfortunately perpholders are mostly retirees who are non financial saavy, i can see the risk reward ratio for maximum recovery is better if i veto it. Even if hyflux really liquidates, an investor with $100k will only lose 3% cash, but hyflux mgmt, secured and MTN risks are much higher. So any perp or pref share holders going to accept?
agree, 3% is derisory

this Salim offer is no white knight, more like a corporate raider preying on distressed companies
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Old 27-02-2019, 11:50 AM   #2214
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I rather give up the few % so that hyflux can liquidate and the accounts will be scrutinized.

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Old 27-02-2019, 12:01 PM   #2215
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Hi, what is the projected amount in return if TS is to liquidate from the infrastructure? Can this amount be exceeded as compared to the amount that Salim is offering?

Thanks.
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Old 27-02-2019, 01:14 PM   #2216
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Hi, what is the projected amount in return if TS is to liquidate from the infrastructure? Can this amount be exceeded as compared to the amount that Salim is offering?

Thanks.
Zero cash + some debt.
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Old 27-02-2019, 01:45 PM   #2217
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Hi, what is the projected amount in return if TS is to liquidate from the infrastructure? Can this amount be exceeded as compared to the amount that Salim is offering?

Thanks.
book value is 1.3B, current offer less than $700M, bidder reported by Bloomberg as sembcorp. the amt is not even enough to pay off secured creditor, let alone perp and pref shareholders.
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Old 27-02-2019, 03:31 PM   #2218
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All the events unfolding since then reinforces my belief that perps and prefs are treated like sh*t.

Was in conversation with someone who just received the
"Notice of Scheme Meeting" letter from Hyflux.

Guess what, it doesn't even enclose a proxy form in the snail mail.

Imagine the thousands of mom and pop retail investors have to go look for a proxy form if they can't attend the scheme meeting on 5 Apr. This will certainly reduce the %tage attendance / votes for this group of people.

Below is what I had posted on 16 Feb.

These are what lawyers and advisors can do in crafting the SA.. the worst off group can make nary a difference in the final outcome. Hope this is not the case here.
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Old 27-02-2019, 05:18 PM   #2219
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What about ordinary shareholders. Do they get to vote on this?
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Old 27-02-2019, 05:51 PM   #2220
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What about ordinary shareholders. Do they get to vote on this?
Nope.

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