SINGAPORE (May 30): The Singapore High Court has granted Hyflux a two-month extension of its debt moratorium, the company announced in a filing last night.
The next court hearing has been scheduled on Aug 2 at 2.30 pm.
The extension is subject to the continuation of ongoing weekly meetings with creditor representatives and updates on the running costs of the restructuring on a monthly basis, as well as an update on the restructuring on June 29.
This is Hyflux’s fourth moratorium extension since the distressed water company called for a restructuring of its debts a year ago.
See: Hyflux granted one-month extension of debt moratorium instead; new deadline is May 24
Hyflux is reportedly in talks with seven different parties for a potential cash infusion, and plans to enter into a binding term sheet with one of them by mid-June.
So far, Hyflux has named two potential suitors.
One is UAE-based Utico FZE for a possible investment of $400 million although Hyflux clarified on Tuesday it had not sign any binding agreements with the latter.
See: No binding agreement with potential investor Utico yet: Hyflux
Hyflux also received another non-binding letter of intent from Oyster Bay Fund to invest up to $500 million in the group.
See: Hyflux receives another LOI, this time from Oyster Bay Fund to invest up to $500 mil
Five other unnamed investors are in talks with Hyflux. They include a large desalination firm; a player in the power sector in Asia; a fund that invests in distressed companies; a nuclear and civil engineering firm based in Asia; as well as a waste treatment company based in Asia.
Hyflux will meet stakeholders and draw up terms of a restructuring scheme by the end of June, and aims to apply for leave to convene scheme meetings for creditors in July.
It will then hold scheme meetings in late August, and complete the court-sanctioned restructuring process by September.
