SINGAPORE (June 4): In a letter to Hyflux CEO Olivia Lum and its board of directors sent on Tuesday (June 2), Aqua Munda’s director Bambang Sugeng bin Kajairi says that the company is still “interested” in buying over Hyflux’s debt, according to an SGX filing.
“We are fully cognizant of the cash flow constraints that the Hyflux Group is facing as a result of the drawn out debt restructuring process and the toll that it has on the on-going operations of the Hyflux Group,” says Kajairi.
“Subject to the grant by the Court of a further extension of the existing moratorium, Aqua Munda is ready to provide no less than $10 million of cash funding to meet the on-going operational costs and other working capital needs of the Hyflux Group, such funding to be by way of loan or otherwise on terms and conditions to be mutually agreed,” he adds.
However, due to the recent global Covid-19 outbreak, and the oil crisis, Aqua Munda will be re-assessing its pricing for the secondary market purchase of the unsecured debts.
The seeking of a return from a successful debt restructuring exercise from Hyflux are not the end-goals of Aqua Munda, says Kajairi.
Instead, the company hopes to tap on Hyflux’s technical expertise, available technologies, and Hyflux’s know-how in the water treatment sector, to support its infrastructure projects in Indonesia, Vietnam, and countries in the Middle East and North Africa.
On June 2, Hyflux and its directors faced a joint probe by CAD, MAS and ACRA for suspected false and misleading statements as well as breaches of disclosure requirements.
See also: SIAS calls on Aqua Munda to show 'more transparency' in bid for Hyflux debt
