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Hyflux
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Starship
Supreme |
23-Apr-2019 11:44
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And this Clown Stock continues trying to pull rabbits from it' s empty hat...................    Hyflux applies for 3-month debt moratorium extension, hit with fresh US$65m in claims TUE, APR 23, 2019 - 8:47 AM HYFLUX and three of its subsidiaries have applied to the Singapore High Court for an additional three-month reprieve from its creditors as it works on another plan to avoid liquidation, it announced in an exchange filing on Tuesday. The applications will be heard at the next case management conference scheduled on April 25, just days before its court-sanctioned protection from creditors expires on April 30. If granted, the debt moratorium will be extended to July 30, 2019. The troubled water treatment firm said the applications were filed by Hyflux, Hydrochem, Hyflux Engineering and Hyflux Membrane Manufacturing. Another subsidiary, Hyflux Innovation Centre (HIC), has not filed an application. HIC was part of the entities - together with Hyflux and the other three subsidiaries - that were granted a moratorium in June 2018 before they applied for an extension in November 2018. Hyflux also disclosed in the filing that it knows of two claims, totalling US$65.03 million, made by Tahlyat Myah Magtaa SpA (TMM), the project company for its Magtaa desalination plant located in Algeria. The company said it received a notice from Arab Banking Corporation of a claim by TMM of some US$8.53 million under a counter-guarantee facility demanding immediate payment of that sum from Hydrochem and Hyflux. Hyflux also said it has become aware of another claim of about US$56.5 million by TMM under a separate performance bond issued by BNP Paribas El Djazair, although BNP Paribas has not issued any legal notice in relation to this claim. Hyflux said it will provide further updates as and when it receives legal notice. Hyflux said it disputes TMM&rsquo s right to make these claims and is seeking legal advice on the appropriate steps to be taken. Both claims are expected to have a material impact on the group&rsquo s financial performance, it added. In a private meeting on Monday, Hyflux&rsquo s advisers told David Gerald, president of the Securities Investors Association (Singapore), that the company will need at least three months for its new plan to materialise. Hyflux&rsquo s new plan to return to solvency is to keep perpetual and preference shareholders whole in its books as equity rather than debt. This will only be viable if Hyflux&rsquo s interest payments to its perp and pref holders are lowered or suspended for a number of years or perpetuity. No specific details have been shared yet by Hyflux. After its planned rescue deal with Indonesia&rsquo s Salim-Medco fell through earlier this month, Hyflux is slated to lose its largest asset, Tuaspring, an integrated power and water plant project. National water agency PUB has issued a notice to seize the Tuaspring desalination plant, while secured lender Maybank intends to appoint receivers to the Tuaspring power plant. Meanwhile, Hyflux has appointed dealmaker Nicky Tan to help it find a new distressed investor. https://www.businesstimes.com.sg/companies-markets/hyflux-applies-for-3-month-debt-moratorium-extension-hit-with-fresh-us65m-in  |
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Leehonghng
Member |
23-Apr-2019 10:05
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The company will close-shop, all my money gone (~~S$ 51'700.00++)! The SIAS only take care of Hyflux boss and they are always looking after hyflux's interest, nothing else! | ||||
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ysh2006
Supreme |
23-Apr-2019 07:46
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No body ask them to take care so let small retailers die ....rich investors being taken care only.
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Sgvale
Supreme |
23-Apr-2019 07:36
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Gerald's relatives or friends also stuck in Hyflux ?
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Maller
Elite |
23-Apr-2019 07:25
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What about the common share holders of hyflux? Any good deal? | ||||
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ysh2006
Supreme |
23-Apr-2019 06:43
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Maybank maybe reject this plan and force sell the assets ....without white knight and no money what sort of plan also no use. | ||||
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lukewong82
Master |
22-Apr-2019 23:02
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Quote: https://www.channelnewsasia.com/news/business/hyflux-has-credible-revival-plan-to-file-for-moratorium-11468284
The plan, which will need &ldquo at least three months&rdquo to materialise, will be a &ldquo win&rdquo for the aggrieved 34,000 holders of Hyflux&rsquo s perpetual securities and preference shares as there is a chance that they will not have to endure haircuts, said SIAS president David Gerald. wow.. SIAS president painted a very beautiful picture..
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fatpanda
Supreme |
22-Apr-2019 22:56
Yells: "Another wonderful day!" |
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Give and take lah. Chin chai chin chai lah.
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Stephenchow
Veteran |
22-Apr-2019 22:45
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My guess:- Once the Tuas project is off to PUB/Malysan bank, converts all notes/bond/perp and senior creditors debts to share and then do right issue to existing shareholders. TT and Sunmoon are the 2 companies that have been rescued before, just need to do a little bit of google should know the answer. & the future fate... |
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ysh2006
Supreme |
22-Apr-2019 22:03
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Maybank gave so many times extension in the end got to appoint a agent for TS assets receivership....Maybank should force sell TS to SCI last year and get back the loan money. | ||||
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lukewong82
Master |
22-Apr-2019 21:25
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got la.. he took away the most transparent award from midas AFTER the scandal happened :) So he can say at least he done something for the midas investors :)
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Nainai
Member |
22-Apr-2019 21:05
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What else is there left after TS is taken away from Hyflux? This plan just delay....... it will still end up in liquidation down the road |
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Stephenchow
Veteran |
22-Apr-2019 20:39
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" This will only be viable if Hyflux' s interest payments to its perp and pref holders are lowered or suspended for a number of years or perpetuity."
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lukewong82
Master |
22-Apr-2019 20:10
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SIAS? the one who awarded " most transparent award" to MIDAS just before midas scandal? :)
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Stephenchow
Veteran |
22-Apr-2019 20:06
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Unless right issue, just don' t see how this works..Probably just buying time....
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guards80
Supreme |
21-Apr-2019 12:20
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Ex-white knight SM Investments sues Hyflux for breaching agreement terms[SINGAPORE] Former white knight SM Investments (SMI) will sue debt-laden Hyflux for cancelling the S$530 million rescue deal, it said in a statement on Friday (April 19). The move means both Hyflux and SMI will be making a grab for the S$38.9 million deposit that was placed in escrow by SMI for the restructuring agreement. SMI said it had not accepted the water treatment group' s " purported termination" of the investment deal on April 4, adding that SMI only ended the deal on Friday (April 19) in accordance with the terms of the agreement. The decision to terminate was based on several " termination events" , the investor group said. It said that Hyflux had wrongfully tried to walk away from the rescue deal through its actions on April 4. " This was a repudiatory breach of the agreement by Hyflux entitling SMI to terminate the restructuring agreement," said SMI. Hyflux had also failed to meet the April 16 deadline to satisfy various conditions, which included obtaining a sanctioned scheme of arrangement to settle the amount owed to creditors. SMI said this failure meant that the agreement would automatically cease to operate. The arrangements were supposed to be put to a vote by Hyflux' s stakeholders in two days of scheme meetings, but Hyflux called off the vote before they could take place on April 5 and 8. SMI said that issues at Hyflux' s three projects - Tuaspring, Singspring and its Algerian desalination plant Magtaa - have not been remedied. On Wednesday, national water agency PUB issued a notice to Tuaspring Pte Ltd saying that it would take back the desalination plant after 30 days. The Tuaspring plant has been at the heart of Hyflux' s financial woes. " Each of the termination events entitles SMI to a refund of its deposit in accordance with the restructuring agreement," said SMI, adding that it rejects Hyflux' s accusations on Monday that it reneged on the deal. Hyflux has nearly S$2.95 billion of debt as of March 31 last year, and as part of the now-aborted deal with SMI, had agreed to sell a majority stake in the restructured company to SMI in exchange for a S$530 million investment. Hyflux pulled out of the agreement because of SMI' s " repeated refusal to commit to making the investment necessary for the restructuring" , it said previously. The clock is ticking down until April 30, when the court-sanctioned debt moratorium that protects Hyflux from its creditors expires. http://www.businesstimes.com.sg/companies-markets/ex-white-knight-sm-investments-sues-hyflux-for-breaching-agreement-terms |
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enjoylife77
Veteran |
20-Apr-2019 20:24
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PUB only called for the tender for desalination plant. The construction of the GenCo was Hyflux own deadly commercial blunder back then. | ||||
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ysh2006
Supreme |
20-Apr-2019 16:42
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Who know EMA might exercise the right to force buy the power plant at $1.00 saying Hyflux cannot maintain and delivery the required MW to the grids ?....like Boleh land Clob Int all contracts no valid ? National Security first ?... | ||||
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ysh2006
Supreme |
20-Apr-2019 16:34
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Maybank said clearly no more time given force sell Hyflux by month end ?... | ||||
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Stephenchow
Veteran |
20-Apr-2019 08:08
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Don' t think PUB and the Malayan bank are three years old boys playing sands, that wil just retrace their notices . PUB already has a 30m desalination plant just next to TuasSpring (70m) , the is definitely enconmic of scale and synergy (100m). SunMoon and TT International were the two firms rescued before, one is now in SGX' s watchlist and another one suspended since Aug 4, 2017. Embattled water desalination company Hyflux, which appointed heavyweight debt restructuring expert nTan this week as its corporate adviser, is in a race against time to find a new buyer, with one week to file for an extension of its debt moratorium. The bid gained more urgency with PUB firing a warning on Wednesday, saying it was terminating its water purchase agreement with Hyflux and would take over its desalination plant Tuaspring in 30 days. Sources familiar with the situation said Hyflux is in talks with potential investors, after a previous $530 million pact with the Indonesian Salim-Medco Investments fell through early this month." Potential investors continue to express interest in investing in the company," said a source who declined to be named as he is not authorised to speak publicly on the matter. But more time beyond the moratorium was needed to hammer out any rescue deal, he said. Grappling with debts totalling $2.95 billion, Hyflux filed for court protection last May and is protected from creditors by a debt moratorium which expires on April 30. The company is now in discussions with its major shareholders and creditors, said sources. Their support would be necessary in obtaining court approval to extend the debt moratorium. But the process has taken a beating. Tuaspring' s only secured creditor, Maybank, intends to start enforcement action against its assets, apart from the desalination plant and shared infrastructure, said a Singapore Exchange filing by Hyflux yesterday. This was after Hyflux said on Monday that nTan Corporate Advisory was coming on board, in a move that some industry observers saw as a renewed effort at finding a new buyer for the beleaguered company, restructuring its debt and avoiding liquidation. nTan is headed by Mr Nicky Tan, a well-known dealmaker on the local corporate scene. PRESSURE FROM PUB?Some observers are sceptical about what can be done at the eleventh hour. Even though the debt moratorium expires on April 30, any application to extend the period of protection must be filed by next Thursday - barely a week from today. " How in the world is Nicky Tan going to turn around the company when PUB has now pulled the plug? Who will come in at this stage? The water plant is being taken away," said an observer, who declined to be identified. Other observers, however, saw PUB' s latest missive as a move to pressure all parties to hammer out a deal. They said that the national water agency might be persuaded not to take over Hyflux' s Tuaspring water desalination plant if nTan finds a new and acceptable investor. PUB had said earlier that it would take over the water plant for zero dollar - and waive its compensations claims on the company - should Tuaspring fail to keep the plant reliably operational. But this threat to take over the water plant at zero cost has angered Hyflux' s 34,000 retail investors, who are owed $900 million in total. These investors fear they may hardly see anything back by the time any repayment money trickles down to them. " The notice by PUB will basically put pressure on all stakeholders to moderate their expectations and to quickly get a deal done and to engage PUB thereafter, for it to reconsider its position," said another source who is familiar with the saga. Instead of taking over the water plant at zero cost and facing the ire of those retail investors, PUB could be persuaded to accept a new investor if the deal is viable enough. " If its concerns are addressed, there would be no reason why PUB would not reconsider its position, given the number of investors and lenders - both retail and otherwise - who would be affected," the source said. However, in the event that PUB does take over the water plant, observers said there was still remaining business in the company that could be sold off to a new investor - such as the neighbouring electricity plant in Tuas and the services the company provides. Hyflux offers water treatment services in China, North Africa and the Middle East. " There will be still business left to be saved," said the source who is familiar with the saga. WHAT LIES AHEAD?What Hyflux has going for it as it tries to woo other investors is the sheer size of the debt and the fact that it concerns a resource of national interest, said a former financial adviser with expertise in debt restructuring. " We understand that it is a company with very high upfront costs, in capital expenditure. A distressed sale of the company' s assets will likely be at a very marked-down price. So a better alternative will be accepting a deal under debt restructuring that is better than liquidation," he said. By undergoing debt restructuring, creditors hope to minimise their losses. But where debt restructuring fails and liquidation happens, assets are usually sold off at very low prices, forcing creditors to stomach huge losses, or even write off their investments entirely. Huge creditors, who may have lent massive sums of money, try to avoid liquidation. " For the banks, if you write off $10 million, it' s still okay, the person at the bank may have an easier time justifying the write-off. If you must justify writing off say hundreds of millions, then you have to be careful, it' s a very big hit," said the former financial adviser. Hyflux' s total bank debt is about $1.84 billion, with Maybank alone having an exposure of $658.6 million, according to media reports. " It is a function of the size. Big borrowers tend to get away with a deal because of the fact that banks cannot take that type of write-off," he said. Observers also noted that there might be political pressure to put a deal together. In this resource-challenged island state, water holds sway and its supply cannot be disrupted. " There are political ramifications. The pressure put on by the powers that be to find a solution," said the former financial adviser. Conversely, this also means that unless PUB is assured that the Tuaspring water supply will remain reliable, it will simply take over the plant itself and leave Hyflux and its investors to pick up the pieces. Retail investors, who are last in line when the repayments materialise, are hoping there will be a rescue deal and that the debts owed to them will not simply be written off. Many of them are common men and women in the street, who now say they were not given enough information about these investment products they bought. One of these products was perpetual securities which offered them an annual return of 6 per cent " forever" . Dr Samuel Tan, assistant professor of accounting at the Singapore Management University, said that while it was debatable whether these perpetual securities were too complex for the lay person to understand, Hyflux' s financial reports were not easy to understand. " I can' t say how complex perpetual securities are as an investment in themselves, but the complexity of Hyflux' s financial statements could have made it difficult for retail investors to understand the value of its perpetual securities," Dr Tan said. |
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