Hyflux files for 3-month extension with court for reprieve from creditors
The applications will be heard in the next case management conference scheduled on April 25, Hyflux said.
Water treatment firm Hyflux on Tuesday said it has filed for a further extension on its expiring court protection for three more months, as it tries to work out its survival plan away from creditors.
In a filing on the Singapore Exchange, Hyflux said it has filed applications for the firm and three of its subsidiaries, namely Hyflux Engineering, Hyflux Membrane Manufacturing, and Hydrochem, for a further extension of the moratorium. The moratorium was first granted by the Singapore High Court in June last year and extended in November for four-and-a-half months until April 30.
The applications will be heard in the next case management conference scheduled on April 25, Hyflux said. If the court approves on the extension, Hyflux’s court protection will be extended to July 30, 2019.
This time, Hyflux left out a subsidiary, Hyflux Innovation Centre into the application even though it was previously included.
New claims totalling US$65.03 million
In addition, Hyflux said it has received two claims totalling US$65.03 million made by the project company for the firm’s Magtaa project in Algeria, Tahlyat Myah Magtaa SpA. Hyflux said it disputes Tahlyat’s right to make these claims and is seeking legal advice on the appropriate steps to be taken.
In the regulatory filing, Hyflux said it received a notice from Arab Banking Corporation that a claim of US$8.5 million has been made by Tahlyat demanding for an immediate payment for that sum from Hydrochem and Hyflux.
The other claim of about US$56.5 million is related to 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 the legal notice.
Even though Hyflux disputed Tahlyat the right to make those claims, it commented that the mentioned claims are expected to have a material impact on the financial performance of the group.
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