Hyflux gathers S$3.5 billion in proofs of claims from 73 parties
Owners of Hyflux’s S$500 million 6% perpetual securities have filed claims of S$540.7 million, while owners of the group’s preference shares have filed claims worth S$429.3 million.
Water treatment firm Hyflux has received proof of claims from 73 parties, amounting to S$3.51 billion, the firm announced in a regulatory filing on Friday.
The list of claimants ranges from banks, to landlords, to retail investors. The filing of proofs is a requirement before the claimant is entitled to vote on the restructuring proposal at the scheme meeting scheduled on April 5th.
On the list, retail investors in Hyflux’s perpetual securities and preference shares have filed proofs of claim amounts totalling close to a billion dollars. Owners of Hyflux’s S$500 million 6% perpetual securities have filed claims of S$540.7 million, while owners of the group’s preference shares have filed claims worth S$429.3 million.
Project firm Tahlyat Myah Magtaa in Algeria, North Africa has filed a proof of claim worth S$502.6 million for an engineering, procurement and construction (EPC) contract and an operations and maintenance contract parent guarantee that is tied to the group’s Magtaa desalination plant.
Bank claimants such as DBS Bank is asking for claims of S$109.2 million for a syndicated loan and various EPC contract performance bonds. Mizuho Bank in Singapore is seeking to claim S$183.2 million for a syndicated loan, bilateral loan and project delivery guarantee.
Before the scheme meeting, Hyflux is scheduled to meet retail investors in a third round of townhall meetings on March 13th.
Putting out fires
The firm has been making headlines in recent weeks, with investor watchdog the Securities Investors Association (Singapore) last month querying the water treatment company on not providing critical information regarding the operations, valuation and accountability of the board of directors of Hyflux, in a bid to help frustrated retail investors to make an informed decision on the restructuring.
On Saturday, Hyflux wrote in a statement it submitted to the High Court of the Republic of Singapore it took an impairment hit of S$916 million for the first nine months of last year, to adjust to the fall in carrying value of the Tuaspring water and power plant and other write-downs.
On Tuesday, Singapore’s national water agency PUB issued a default notice to Hyflux’s Tuaspring for failing to keep its desalination plant in a ‘reliably operational’ mode as required under the Water Purchase Agreement.
The PUB has given Tuaspring a 30-day notice to remedy any defaults and said it will exercise its right to terminate the agreement and ‘take control of the plant’ if the defaults are not fixed.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets