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Latest Forum Topics / Hyflux    Last:0.21 --  Post Reply
Hyflux
Nainai
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14-Mar-2019 07:17     
 
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 Alert Admin 		Sad but got to agree with u...

fundamentalhero      ( Date: 13-Mar-2019 22:51) Posted:

almost died laughing and imaging about it. [not in a mean way as though i am happy about people losing money - i lost a lot too so i understand]
but just imagining that this time is marching out of anger if it were to happen. pfft.

But nah don' t worry it will not happen.
quote something i heard from coffeeshop talks " singaporeans has lost their guts for a long time now and new baby singaporeans are borned without guts nowadays"

i disagree though. have to change the word to " balls or even tongue will do"

Stephenchow      ( Date: 13-Mar-2019 22:34) Posted:

Need to be in stadium for 34,000 crowd & managment team march in with the company flags like the previous nationa day parade  angry
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Starship
Supreme
14-Mar-2019 01:16     
 
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Stephenchow      ( Date: 13-Mar-2019 22:34) Posted:

Need to be in stadium for 34,000 crowd & managment team march in with the company flags like the previous nationa day parade  angry

ysh2006      ( Date: 12-Mar-2019 07:19) Posted:

Go to NTUC auditorum lah...charge $1500 per hour cheap cheap!!..
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fundamentalhero
Veteran
13-Mar-2019 22:51     
 
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Yells: "I NEED HONEYS AND MONIES"
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 Alert Admin 		almost died laughing and imaging about it. [not in a mean way as though i am happy about people losing money - i lost a lot too so i understand]
but just imagining that this time is marching out of anger if it were to happen. pfft.

But nah don' t worry it will not happen.
quote something i heard from coffeeshop talks " singaporeans has lost their guts for a long time now and new baby singaporeans are borned without guts nowadays"

i disagree though. have to change the word to " balls or even tongue will do"

Stephenchow      ( Date: 13-Mar-2019 22:34) Posted:

Need to be in stadium for 34,000 crowd & managment team march in with the company flags like the previous nationa day parade  angry

ysh2006      ( Date: 12-Mar-2019 07:19) Posted:

Go to NTUC auditorum lah...charge $1500 per hour cheap cheap!!..
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Stephenchow
Veteran
13-Mar-2019 22:34     
 
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 Alert Admin 		Need to be in stadium for 34,000 crowd & managment team march in with the company flags like the previous nationa day parade  angry

ysh2006      ( Date: 12-Mar-2019 07:19) Posted:

Go to NTUC auditorum lah...charge $1500 per hour cheap cheap!!...

Stephenchow      ( Date: 11-Mar-2019 22:49) Posted:



BELEAGUERED water treatment company Hyflux has called off Wednesday' s town hall meeting on its restructuring, citing space constraints at the original venue, in an announcement late on Monday night.

The third round of meetings, for  holders of its notes,  perpetual securities and preference shares, was to have been held at its  Hyflux  Innovation Centre in Bendemeer Road on March 13 at 7pm.

But " due to the large number of holders of the securities who have indicated that they wish to attend, the company considers it necessary to arrange for a larger venue to conduct this town hall meeting" , Hyflux has now said, in an update to its Feb 27 announcement.

It added that it will announce the new time and venue of the meeting " as soon as  possible" .
 


Hyflux recently unveiled plans to tweak its debt restructuring scheme and give disgruntled retail perp and pref holders a  higher recovery rate on their original investments, after they pointed accusing fingers at the minimum recovery rate promised to  senior unsecured creditors.
Ahead of a do-or-die creditors' vote between restructuring and liquidation on April 5, retail investors have filed proofs for a hefty share of the  S$3.51 billion in claims being made against Hyflux.


Holders of the  S$500 million, 6 per cent perpetual securities have filed S$540.7 million of claims, while holders of the  S$400 million, 8 per cent preference shares filed claims worth S$429.3 million.

Greater clarity on the sums being claimed is expected  after adjudication on Saturday.


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Bkng595
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13-Mar-2019 18:33     
 
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 Alert Admin 		If can afford $100k, get back $10k or get back less than $10k is not that much diff.....
of course, there will always be diff....

MichaelSchenker      ( Date: 13-Mar-2019 18:27) Posted:

10% of 10k means $9,000 loss

10% of 100k means $90,000 loss



 

curious_moo      ( Date: 13-Mar-2019 18:01) Posted:

yah.. getting back 10% of 10k capital vs 10% of 100k capital, got some difference.. 
 
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MichaelSchenker
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13-Mar-2019 18:27     
 
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 Alert Admin 		10% of 10k means $9,000 loss

10% of 100k means $90,000 loss



 

curious_moo      ( Date: 13-Mar-2019 18:01) Posted:

yah.. getting back 10% of 10k capital vs 10% of 100k capital, got some difference.. 
 

des_khor      ( Date: 13-Mar-2019 17:55) Posted:

Depend how much you have lo ...
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curious_moo
Master
13-Mar-2019 18:01     
 
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 Alert Admin 		yah.. getting back 10% of 10k capital vs 10% of 100k capital, got some difference.. 
 

des_khor      ( Date: 13-Mar-2019 17:55) Posted:

Depend how much you have lo ...

Bkng595      ( Date: 13-Mar-2019 17:52) Posted:

90% loss, no diff even if bankrupt. Let gahment take bk and not going to foreigner. Put all 34000 names as donations on a board outside the plant. In future, can tell our children we helped build it for their benefits
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des_khor
Supreme
13-Mar-2019 17:55     
 
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Yells: "Tell me who is God or Market Fortune Teller in this forum ??"
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 Alert Admin 		Depend how much you have lo ...

Bkng595      ( Date: 13-Mar-2019 17:52) Posted:

90% loss, no diff even if bankrupt. Let gahment take bk and not going to foreigner. Put all 34000 names as donations on a board outside the plant. In future, can tell our children we helped build it for their benefits!

Starship      ( Date: 13-Mar-2019 09:43) Posted:


Investors think they' re investing in CPF.............after happily collecting 6% annual interest fm Hyflux, they now expect govt to bail them out...................cheekydevil

Singapore water debacle threatens 90% losses for investors 
Bloomberg
13/03/19, 07:20 am

SINGAPORE (Mar 13): The catastrophic slump of Singapore&rsquo s much-vaunted water and power company, Hyflux Ltd., has stunned 34,000 retail investors who were lured by the promise of a 6% annual return forever from a company that seemed to have a gold seal of government approval.

At the heart of the debacle is Tuaspring, a desalination and power plant that cost $1.1 billion and was heralded as one of the &ldquo national taps&rdquo for an island that had long depended on importing water and harvesting rainwater for survival. The company&rsquo s glowing prospects encouraged investors including Li Meicheng and Violet Seow to funnel some of their savings into $900 million of junior debt to help fund the venture and group expansion.

Tuaspring was opened to great fanfare in September 2013, with the head of the Public Utilities Board and two government ministers flanking Prime Minister Lee Hsien Loong, who called the plant &ldquo the latest milestone in Singapore&rsquo s water journey,&rdquo praising its &ldquo unique and cost-efficient design.&rdquo

But the facility hasn&rsquo t made money since under its 25-year water-supply agreement. And losses snowballed after its gas-turbine power plant started selling excess capacity in 2016 to the power grid, which had a glut of electricity caused by the opening of the market to competition. As cash depleted and liabilities approached $2.7 billion, Hyflux sought court protection from creditors to restructure.

Commercial Matter

Many investors expected the government to step in and help a venture it had enthusiastically praised. But the authorities have rejected calls for intervention into what they call a &ldquo commercial matter.&rdquo The PUB served a notice of default on the Tuaspring plant owner for operational and financial lapses. Hyflux was given 30 days to make good on its obligations, or the state could terminate the contract and seize the plant.

&ldquo I&rsquo m very disappointed that the government has decided to take a tough stance instead of offering a helping hand to an iconic Singapore company,&rdquo said Li, a 42-year self-employed businessman who owns Hyflux perpetual notes and preference shares. &ldquo This is another dagger in the chest for retail investors.&rdquo

The government deadline for Tuaspring to comply, April 5, is the day creditors must vote on Hyflux&rsquo s restructuring plan, effectively forcing them to accept the workout deal or risk losing everything. Hyflux must persuade more than 50% of those who turn up to the meeting and 75% in value of claims, to back the reorganization. The company will reschedule a town hall previously planned for March 13 as a large number of noteholders wish to attend.

&ldquo This adds to the urgency and pressure on Hyflux and its creditors to pass the restructuring plan,&rdquo said Ang Chung Yuh, a senior fixed-income analyst at iFast Corp. &ldquo They are stuck between a rock and a hard place.&rdquo

The PUB said in response to questions that its responsibility is to safeguard Singapore&rsquo s water security and that desalination plants are integral to that security. &ldquo PUB&rsquo s decision to issue a default notice is to ensure the asset is secured and continues to produce water,&rdquo according to emailed comments from a spokesperson.

&lsquo Feel Abandoned&rsquo

Li and other holders of junior securities stand to lose as much as 90% of their capital in the restructuring proposal, under which Indonesia&rsquo s Salim Group and energy company Medco Group will gain a 60% stake in exchange for a $530 million cash injection. Banks and senior bond holders would lose about 75%.

&ldquo The new investor isn&rsquo t a white knight when it only wants the assets but not the debt,&rdquo said Seow, a home-maker in her 50s who owns Hyflux shares and bonds, and intends to vote against the deal. Like many mom-and-pop investors who put their life savings into it, &ldquo we feel abandoned and sacrificed,&rdquo she said.

Hyflux on March 8 said it would alter its repayment plan to help retail investors, with staff getting a scaled-down incentive plan to complete projects, and senior lenders and creditors sharing some of their future payouts.

The changes &ldquo hardly moved the needle,&rdquo said Li. Hyflux may not even survive that long for retail investors to collect any recovery, Seow added.

Junior creditors may increase their recovery rate under the plan, but it&rsquo s uncertain if the amended proposal will pass because it may still be seen as unfair by those creditors, according to a report from Oversea-Chinese Banking Corp.

Hyflux didn&rsquo t answer requests for comment, beyond referring to its stock-exchange filings.

Credit Risks

The company is the latest in a series of at least 15 corporate defaults since 2014 that highlight the risks in a dark corner of Singapore&rsquo s $386 billion credit market -- unrated bonds paying junk-level yields in a near-zero interest-rate era. From a 77-year old millionaire in Rickmers Maritime liquidation to a 71-year old former civil servant who felt cheated in Noble Group Ltd.&rsquo s implosion, retail investors have been battered by losses in bonds and stocks.

&ldquo This episode is really a wake-up call for the Singapore financial sector, how we promote such novel and risky instruments, the role of financial intermediaries and the education of the investing public,&rdquo said Lawrence Loh, director of Centre for Governance, Institutions and Organizations at NUS Business School in Singapore.

A spokesperson for the Monetary Authority of Singapore said in response to queries on Hyflux that all investments carry risks and that businesses can come under financial stress.

Closely Monitoring

&ldquo As a listed company, Hyflux is required under SGX&rsquo s disclosure rules to provide investors with up-to-date, material information such as its financial condition and prospects," the spokesperson said. &ldquo MAS and SGX continue to monitor the situation closely, including ensuring that Hyflux actively engages its investors, and provide regular and timely updates to the market on its restructuring plan.&rdquo

For Hyflux investors, the terms of its debt sales certainly seemed attractive at the time. The company sold $400 million of preference shares in April 2011, double the amount marketed, to help finance Tuaspring. Another $500 million bond sale came in May 2016, largely to redeem maturing debts. Without a maturity date, both unrated instruments had promised to pay 6% or more annually to eternity. Buyers could even place orders through local ATMs.

The company&rsquo s pedigree also seemed solid. It grew out of a startup founded in 1989 by Olivia Lum, an orphan who left a career in pharmaceuticals with $20,000 from selling her car and apartment. After selling shares to the public in January 2001, Hyflux started winning municipal contracts in Singapore. Lum became a role model for local entrepreneurs, winning accolades and a seat in parliament reserved for distinguished community members.

Stock Slide

The Hyflux saga should have rung alarm bells, said NUS&rsquo s Loh. The company was fueling growth by taking on a large amount of debt, while investors had misplaced their trust in what they perceived as a state-backed entity, he said. &ldquo Unfortunately, no one stepped back and asked questions.&rdquo

Hyflux previously counted state investment arm Temasek Holdings as a business partner and an equity holder, according to a 2005 annual report. Temasek fully exited its position in 2005, and isn&rsquo t a shareholder, according to an emailed reply to questions.

At its peak in late 2010, Hyflux was worth nearly $2.1 billion. The shares were suspended in May last year at $0.21 apiece, valuing the company at $165 million.

When Hyflux sought court protection last year, its legal adviser, WongPartnership LLP, called it a homegrown success whose business continues to be relevant to Singapore&rsquo s future economy. The company is now seeking to wipe $1 billion of debt off its balance sheet to survive.

&ldquo What they are offering to us is simply ridiculous,&rdquo said Christopher Ching, a construction industry consultant who bought $250,000 of senior notes from the secondary market in late 2017. While he stands to recoup a higher percentage than the junior creditors, he&rsquo s prepared to fight with them for a better deal. &ldquo We might as well go down together.&rdquo

https://www.theedgesingapore.com/singapore-water-debacle-threatens-90-losses-investors


 


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Bkng595
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13-Mar-2019 17:52     
 
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 Alert Admin 		90% loss, no diff even if bankrupt. Let gahment take bk and not going to foreigner. Put all 34000 names as donations on a board outside the plant. In future, can tell our children we helped build it for their benefits!

Starship      ( Date: 13-Mar-2019 09:43) Posted:


Investors think they' re investing in CPF.............after happily collecting 6% annual interest fm Hyflux, they now expect govt to bail them out...................cheekydevil

Singapore water debacle threatens 90% losses for investors 
Bloomberg
13/03/19, 07:20 am

SINGAPORE (Mar 13): The catastrophic slump of Singapore&rsquo s much-vaunted water and power company, Hyflux Ltd., has stunned 34,000 retail investors who were lured by the promise of a 6% annual return forever from a company that seemed to have a gold seal of government approval.

At the heart of the debacle is Tuaspring, a desalination and power plant that cost $1.1 billion and was heralded as one of the &ldquo national taps&rdquo for an island that had long depended on importing water and harvesting rainwater for survival. The company&rsquo s glowing prospects encouraged investors including Li Meicheng and Violet Seow to funnel some of their savings into $900 million of junior debt to help fund the venture and group expansion.

Tuaspring was opened to great fanfare in September 2013, with the head of the Public Utilities Board and two government ministers flanking Prime Minister Lee Hsien Loong, who called the plant &ldquo the latest milestone in Singapore&rsquo s water journey,&rdquo praising its &ldquo unique and cost-efficient design.&rdquo

But the facility hasn&rsquo t made money since under its 25-year water-supply agreement. And losses snowballed after its gas-turbine power plant started selling excess capacity in 2016 to the power grid, which had a glut of electricity caused by the opening of the market to competition. As cash depleted and liabilities approached $2.7 billion, Hyflux sought court protection from creditors to restructure.

Commercial Matter

Many investors expected the government to step in and help a venture it had enthusiastically praised. But the authorities have rejected calls for intervention into what they call a &ldquo commercial matter.&rdquo The PUB served a notice of default on the Tuaspring plant owner for operational and financial lapses. Hyflux was given 30 days to make good on its obligations, or the state could terminate the contract and seize the plant.

&ldquo I&rsquo m very disappointed that the government has decided to take a tough stance instead of offering a helping hand to an iconic Singapore company,&rdquo said Li, a 42-year self-employed businessman who owns Hyflux perpetual notes and preference shares. &ldquo This is another dagger in the chest for retail investors.&rdquo

The government deadline for Tuaspring to comply, April 5, is the day creditors must vote on Hyflux&rsquo s restructuring plan, effectively forcing them to accept the workout deal or risk losing everything. Hyflux must persuade more than 50% of those who turn up to the meeting and 75% in value of claims, to back the reorganization. The company will reschedule a town hall previously planned for March 13 as a large number of noteholders wish to attend.

&ldquo This adds to the urgency and pressure on Hyflux and its creditors to pass the restructuring plan,&rdquo said Ang Chung Yuh, a senior fixed-income analyst at iFast Corp. &ldquo They are stuck between a rock and a hard place.&rdquo

The PUB said in response to questions that its responsibility is to safeguard Singapore&rsquo s water security and that desalination plants are integral to that security. &ldquo PUB&rsquo s decision to issue a default notice is to ensure the asset is secured and continues to produce water,&rdquo according to emailed comments from a spokesperson.

&lsquo Feel Abandoned&rsquo

Li and other holders of junior securities stand to lose as much as 90% of their capital in the restructuring proposal, under which Indonesia&rsquo s Salim Group and energy company Medco Group will gain a 60% stake in exchange for a $530 million cash injection. Banks and senior bond holders would lose about 75%.

&ldquo The new investor isn&rsquo t a white knight when it only wants the assets but not the debt,&rdquo said Seow, a home-maker in her 50s who owns Hyflux shares and bonds, and intends to vote against the deal. Like many mom-and-pop investors who put their life savings into it, &ldquo we feel abandoned and sacrificed,&rdquo she said.

Hyflux on March 8 said it would alter its repayment plan to help retail investors, with staff getting a scaled-down incentive plan to complete projects, and senior lenders and creditors sharing some of their future payouts.

The changes &ldquo hardly moved the needle,&rdquo said Li. Hyflux may not even survive that long for retail investors to collect any recovery, Seow added.

Junior creditors may increase their recovery rate under the plan, but it&rsquo s uncertain if the amended proposal will pass because it may still be seen as unfair by those creditors, according to a report from Oversea-Chinese Banking Corp.

Hyflux didn&rsquo t answer requests for comment, beyond referring to its stock-exchange filings.

Credit Risks

The company is the latest in a series of at least 15 corporate defaults since 2014 that highlight the risks in a dark corner of Singapore&rsquo s $386 billion credit market -- unrated bonds paying junk-level yields in a near-zero interest-rate era. From a 77-year old millionaire in Rickmers Maritime liquidation to a 71-year old former civil servant who felt cheated in Noble Group Ltd.&rsquo s implosion, retail investors have been battered by losses in bonds and stocks.

&ldquo This episode is really a wake-up call for the Singapore financial sector, how we promote such novel and risky instruments, the role of financial intermediaries and the education of the investing public,&rdquo said Lawrence Loh, director of Centre for Governance, Institutions and Organizations at NUS Business School in Singapore.

A spokesperson for the Monetary Authority of Singapore said in response to queries on Hyflux that all investments carry risks and that businesses can come under financial stress.

Closely Monitoring

&ldquo As a listed company, Hyflux is required under SGX&rsquo s disclosure rules to provide investors with up-to-date, material information such as its financial condition and prospects," the spokesperson said. &ldquo MAS and SGX continue to monitor the situation closely, including ensuring that Hyflux actively engages its investors, and provide regular and timely updates to the market on its restructuring plan.&rdquo

For Hyflux investors, the terms of its debt sales certainly seemed attractive at the time. The company sold $400 million of preference shares in April 2011, double the amount marketed, to help finance Tuaspring. Another $500 million bond sale came in May 2016, largely to redeem maturing debts. Without a maturity date, both unrated instruments had promised to pay 6% or more annually to eternity. Buyers could even place orders through local ATMs.

The company&rsquo s pedigree also seemed solid. It grew out of a startup founded in 1989 by Olivia Lum, an orphan who left a career in pharmaceuticals with $20,000 from selling her car and apartment. After selling shares to the public in January 2001, Hyflux started winning municipal contracts in Singapore. Lum became a role model for local entrepreneurs, winning accolades and a seat in parliament reserved for distinguished community members.

Stock Slide

The Hyflux saga should have rung alarm bells, said NUS&rsquo s Loh. The company was fueling growth by taking on a large amount of debt, while investors had misplaced their trust in what they perceived as a state-backed entity, he said. &ldquo Unfortunately, no one stepped back and asked questions.&rdquo

Hyflux previously counted state investment arm Temasek Holdings as a business partner and an equity holder, according to a 2005 annual report. Temasek fully exited its position in 2005, and isn&rsquo t a shareholder, according to an emailed reply to questions.

At its peak in late 2010, Hyflux was worth nearly $2.1 billion. The shares were suspended in May last year at $0.21 apiece, valuing the company at $165 million.

When Hyflux sought court protection last year, its legal adviser, WongPartnership LLP, called it a homegrown success whose business continues to be relevant to Singapore&rsquo s future economy. The company is now seeking to wipe $1 billion of debt off its balance sheet to survive.

&ldquo What they are offering to us is simply ridiculous,&rdquo said Christopher Ching, a construction industry consultant who bought $250,000 of senior notes from the secondary market in late 2017. While he stands to recoup a higher percentage than the junior creditors, he&rsquo s prepared to fight with them for a better deal. &ldquo We might as well go down together.&rdquo

https://www.theedgesingapore.com/singapore-water-debacle-threatens-90-losses-investors


 

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alidaud
Senior
13-Mar-2019 12:21     
 
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 Alert Admin 		Sideway or standby mode    cool

alidaud      ( Date: 08-Mar-2019 15:42) Posted:


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KAMAL0883
Supreme
13-Mar-2019 12:13     
 
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 Alert Admin 		Public listed and non listed company are differ ....

how could ah long know who are you , where you stay since you are not the one who borrow money directly from them and dun forget there' re
10 over thousands++++++ shareholders so they can' t just spray paint on your door bah.....

P.S. Public listed companies are not allow to borrow money from ah long ----   Act 328 chapter 24

investshare      ( Date: 13-Mar-2019 11:50) Posted:

Ya legally not responsible , but if you run a SME you will know, the supplier, creditor, ah long, will go to the owner/shareholders.

KAMAL0883      ( Date: 13-Mar-2019 11:03) Posted:

Company Act 288 Chapter 68 : Creditors can only chase after the Board of Directors not minor shareholder
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investshare
Supreme
13-Mar-2019 11:50     
 
investshare About Contact  Quote this Post!  
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 Alert Admin 		Ya legally not responsible , but if you run a SME you will know, the supplier, creditor, ah long, will go to the owner/shareholders.

KAMAL0883      ( Date: 13-Mar-2019 11:03) Posted:

Company Act 288 Chapter 68 : Creditors can only chase after the Board of Directors not minor shareholders

investshare      ( Date: 13-Mar-2019 07:39) Posted:

So the shareholders are lucky. If they are shareholders of normal biz, even biz close down, suppliers and creditors will still chase them though legally not responsible
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KAMAL0883
Supreme
13-Mar-2019 11:03     
 
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 Alert Admin 		Company Act 288 Chapter 68 : Creditors can only chase after the Board of Directors not minor shareholders

investshare      ( Date: 13-Mar-2019 07:39) Posted:

So the shareholders are lucky. If they are shareholders of normal biz, even biz close down, suppliers and creditors will still chase them though legally not responsible.

des_khor      ( Date: 12-Mar-2019 23:33) Posted:

Because common shareholders are bosses ... meaning you are borrow money from perp holders .
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Starship
Supreme
13-Mar-2019 09:43     
 
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 Alert Admin
Investors think they' re investing in CPF.............after happily collecting 6% annual interest fm Hyflux, they now expect govt to bail them out...................cheekydevil

Singapore water debacle threatens 90% losses for investors 
Bloomberg
13/03/19, 07:20 am

SINGAPORE (Mar 13): The catastrophic slump of Singapore&rsquo s much-vaunted water and power company, Hyflux Ltd., has stunned 34,000 retail investors who were lured by the promise of a 6% annual return forever from a company that seemed to have a gold seal of government approval.

At the heart of the debacle is Tuaspring, a desalination and power plant that cost $1.1 billion and was heralded as one of the &ldquo national taps&rdquo for an island that had long depended on importing water and harvesting rainwater for survival. The company&rsquo s glowing prospects encouraged investors including Li Meicheng and Violet Seow to funnel some of their savings into $900 million of junior debt to help fund the venture and group expansion.

Tuaspring was opened to great fanfare in September 2013, with the head of the Public Utilities Board and two government ministers flanking Prime Minister Lee Hsien Loong, who called the plant &ldquo the latest milestone in Singapore&rsquo s water journey,&rdquo praising its &ldquo unique and cost-efficient design.&rdquo

But the facility hasn&rsquo t made money since under its 25-year water-supply agreement. And losses snowballed after its gas-turbine power plant started selling excess capacity in 2016 to the power grid, which had a glut of electricity caused by the opening of the market to competition. As cash depleted and liabilities approached $2.7 billion, Hyflux sought court protection from creditors to restructure.

Commercial Matter

Many investors expected the government to step in and help a venture it had enthusiastically praised. But the authorities have rejected calls for intervention into what they call a &ldquo commercial matter.&rdquo The PUB served a notice of default on the Tuaspring plant owner for operational and financial lapses. Hyflux was given 30 days to make good on its obligations, or the state could terminate the contract and seize the plant.

&ldquo I&rsquo m very disappointed that the government has decided to take a tough stance instead of offering a helping hand to an iconic Singapore company,&rdquo said Li, a 42-year self-employed businessman who owns Hyflux perpetual notes and preference shares. &ldquo This is another dagger in the chest for retail investors.&rdquo

The government deadline for Tuaspring to comply, April 5, is the day creditors must vote on Hyflux&rsquo s restructuring plan, effectively forcing them to accept the workout deal or risk losing everything. Hyflux must persuade more than 50% of those who turn up to the meeting and 75% in value of claims, to back the reorganization. The company will reschedule a town hall previously planned for March 13 as a large number of noteholders wish to attend.

&ldquo This adds to the urgency and pressure on Hyflux and its creditors to pass the restructuring plan,&rdquo said Ang Chung Yuh, a senior fixed-income analyst at iFast Corp. &ldquo They are stuck between a rock and a hard place.&rdquo

The PUB said in response to questions that its responsibility is to safeguard Singapore&rsquo s water security and that desalination plants are integral to that security. &ldquo PUB&rsquo s decision to issue a default notice is to ensure the asset is secured and continues to produce water,&rdquo according to emailed comments from a spokesperson.

&lsquo Feel Abandoned&rsquo

Li and other holders of junior securities stand to lose as much as 90% of their capital in the restructuring proposal, under which Indonesia&rsquo s Salim Group and energy company Medco Group will gain a 60% stake in exchange for a $530 million cash injection. Banks and senior bond holders would lose about 75%.

&ldquo The new investor isn&rsquo t a white knight when it only wants the assets but not the debt,&rdquo said Seow, a home-maker in her 50s who owns Hyflux shares and bonds, and intends to vote against the deal. Like many mom-and-pop investors who put their life savings into it, &ldquo we feel abandoned and sacrificed,&rdquo she said.

Hyflux on March 8 said it would alter its repayment plan to help retail investors, with staff getting a scaled-down incentive plan to complete projects, and senior lenders and creditors sharing some of their future payouts.

The changes &ldquo hardly moved the needle,&rdquo said Li. Hyflux may not even survive that long for retail investors to collect any recovery, Seow added.

Junior creditors may increase their recovery rate under the plan, but it&rsquo s uncertain if the amended proposal will pass because it may still be seen as unfair by those creditors, according to a report from Oversea-Chinese Banking Corp.

Hyflux didn&rsquo t answer requests for comment, beyond referring to its stock-exchange filings.

Credit Risks

The company is the latest in a series of at least 15 corporate defaults since 2014 that highlight the risks in a dark corner of Singapore&rsquo s $386 billion credit market -- unrated bonds paying junk-level yields in a near-zero interest-rate era. From a 77-year old millionaire in Rickmers Maritime liquidation to a 71-year old former civil servant who felt cheated in Noble Group Ltd.&rsquo s implosion, retail investors have been battered by losses in bonds and stocks.

&ldquo This episode is really a wake-up call for the Singapore financial sector, how we promote such novel and risky instruments, the role of financial intermediaries and the education of the investing public,&rdquo said Lawrence Loh, director of Centre for Governance, Institutions and Organizations at NUS Business School in Singapore.

A spokesperson for the Monetary Authority of Singapore said in response to queries on Hyflux that all investments carry risks and that businesses can come under financial stress.

Closely Monitoring

&ldquo As a listed company, Hyflux is required under SGX&rsquo s disclosure rules to provide investors with up-to-date, material information such as its financial condition and prospects," the spokesperson said. &ldquo MAS and SGX continue to monitor the situation closely, including ensuring that Hyflux actively engages its investors, and provide regular and timely updates to the market on its restructuring plan.&rdquo

For Hyflux investors, the terms of its debt sales certainly seemed attractive at the time. The company sold $400 million of preference shares in April 2011, double the amount marketed, to help finance Tuaspring. Another $500 million bond sale came in May 2016, largely to redeem maturing debts. Without a maturity date, both unrated instruments had promised to pay 6% or more annually to eternity. Buyers could even place orders through local ATMs.

The company&rsquo s pedigree also seemed solid. It grew out of a startup founded in 1989 by Olivia Lum, an orphan who left a career in pharmaceuticals with $20,000 from selling her car and apartment. After selling shares to the public in January 2001, Hyflux started winning municipal contracts in Singapore. Lum became a role model for local entrepreneurs, winning accolades and a seat in parliament reserved for distinguished community members.

Stock Slide

The Hyflux saga should have rung alarm bells, said NUS&rsquo s Loh. The company was fueling growth by taking on a large amount of debt, while investors had misplaced their trust in what they perceived as a state-backed entity, he said. &ldquo Unfortunately, no one stepped back and asked questions.&rdquo

Hyflux previously counted state investment arm Temasek Holdings as a business partner and an equity holder, according to a 2005 annual report. Temasek fully exited its position in 2005, and isn&rsquo t a shareholder, according to an emailed reply to questions.

At its peak in late 2010, Hyflux was worth nearly $2.1 billion. The shares were suspended in May last year at $0.21 apiece, valuing the company at $165 million.

When Hyflux sought court protection last year, its legal adviser, WongPartnership LLP, called it a homegrown success whose business continues to be relevant to Singapore&rsquo s future economy. The company is now seeking to wipe $1 billion of debt off its balance sheet to survive.

&ldquo What they are offering to us is simply ridiculous,&rdquo said Christopher Ching, a construction industry consultant who bought $250,000 of senior notes from the secondary market in late 2017. While he stands to recoup a higher percentage than the junior creditors, he&rsquo s prepared to fight with them for a better deal. &ldquo We might as well go down together.&rdquo

https://www.theedgesingapore.com/singapore-water-debacle-threatens-90-losses-investors


 
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investshare
Supreme
13-Mar-2019 07:39     
 
investshare About Contact  Quote this Post!  
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 Alert Admin 		So the shareholders are lucky. If they are shareholders of normal biz, even biz close down, suppliers and creditors will still chase them though legally not responsible.

des_khor      ( Date: 12-Mar-2019 23:33) Posted:

Because common shareholders are bosses ... meaning you are borrow money from perp holders .

investshare      ( Date: 12-Mar-2019 19:19) Posted:

Why all only concern for perp holders?
No one even mentioned about common shareholders?
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Qanghoo
Supreme
13-Mar-2019 07:30     
 
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 Alert Admin 		Gd one !!!! Absolutely right.

des_khor      ( Date: 12-Mar-2019 23:33) Posted:

Because common shareholders are bosses ... meaning you are borrow money from perp holders .

investshare      ( Date: 12-Mar-2019 19:19) Posted:

Why all only concern for perp holders?
No one even mentioned about common shareholders?
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des_khor
Supreme
12-Mar-2019 23:33     
 
des_khor About Contact  Quote this Post! Style: Flexible   Mood: peace
Yells: "Tell me who is God or Market Fortune Teller in this forum ??"
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 Alert Admin 		Because common shareholders are bosses ... meaning you are borrow money from perp holders .

investshare      ( Date: 12-Mar-2019 19:19) Posted:

Why all only concern for perp holders?
No one even mentioned about common shareholders?
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ysh2006
Supreme
12-Mar-2019 23:02     
 
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 Alert Admin 		According to them retail holders only 17000 while perp 34 k holders.....

investshare      ( Date: 12-Mar-2019 19:19) Posted:

Why all only concern for perp holders?
No one even mentioned about common shareholders?
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investshare
Supreme
12-Mar-2019 19:19     
 
investshare About Contact  Quote this Post!  
  x 0
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 Alert Admin 		Why all only concern for perp holders?
No one even mentioned about common shareholders?
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zillion
Master
12-Mar-2019 18:51     
 
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 Alert Admin 		one by one of those ' privatised' entities are failing. this water/electricity is sacred to our daily living unlike a bank, a sports stadium kenna belly up. All those elder folks who bought perps for better yield kenna scre-wed. Sgx must be partially held responsible for allowing listed companies to issue such toxic IOUs. 
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