The High Court, on Nov 16, has ruled that beleaguered water treatment company Hyflux Limited will be put under judicial management (JM) with immediate effect, according to national broadsheet The Straits Times.
Borrelli Walsh, a firm that specialises in restructuring, insolvency and forensic accounting, has been appointed as Hyflux’s judicial managers.
The ruling comes following the company’s restructuring attempt that took place for over two years.
On Nov 13, Hyflux issued an announcement to say that it is supporting a plan proposed by Strategic Growth Investments (SGI) to acquire and privatise the company.
Hyflux director Lau Wing Tat, through an SGX filing on Nov 13, said in a letter to SGI that the company “supports the restructuring proposal” and that it will “work with [SGI] to facilitate the adoption and implementation of this proposal… on a timely basis”.
Hyflux, over the past two years or so, have been given 12 extensions of the debt moratorium, but was no closer to getting a deal to pay off its debtors.
On Oct 13, Hyflux came no closer to sealing a restructuring deal with its Middle Eastern suitor Utico FZC, after several allegations, including an accusation that Hyflux has breached prior commitments made to the United Arab Emirates-based company.
On June 26, Hyflux received another proposal from new suitor, Indonesian tycoon Johnny Widjaja who expressed interest to rescue the company by putting in some $300 million to buy up existing debt in exchange for shares and another $100 million as working capital.
On June 2, Hyflux and its directors, including founder and executive chairman Olivia Lum faced a joint probe by the Commercial Affairs Department (CAD), the Monetary Authority of Singapore (MAS) and the Accounting and Corporate Regulatory Authority (ACRA), for suspected false and misleading statements as well as breaches of disclosure requirements.
See: Lessons learnt from Hyflux's troubled waters, web of creditors; restructuring faces hurdles
