Hyflux has received a letter from Longview International Holdings expressing its interest to invest in the troubled water treatment firm, along with a joint venture partner.

The partner is an "undisclosed major Chinese entity", Hyflux said in a bourse filing yesterday.

The proposed investment terms have not been made available to Hyflux.

According to its website, Longview is a Singapore-based holding company that provides consulting and research services to life sciences firms.

There are now three suitors for debt-ridden Hyflux.

Singapore-registered Aqua Munda emerged last December, offering to buy some of the debts of noteholders and unsecured creditors. It recently extended its offer deadline to April 24.

Separately, potential white knight, Emirati utility firm Utico, reiterated yesterday that it "will consider" paying holders of Hyflux's perpetual securities and preference shares (PnP) a certain amount, referred to as a "soft landing", even if the firm lists later than two years after the completion of Hyflux's restructuring.

This was in response to a request from the Securities Investors Association (Singapore), or Sias, for clarification on the proposed scheme terms of Utico's rescue deal for Hyflux.

Under the current scheme terms, PnP holders who choose the second option in the package will receive the cash equivalent of a 4 per cent stake in Utico if it lists within two years of the completion of Hyflux's restructuring.

In a townhall session on Jan 20 for PnP investors, Utiqo said that it would consider providing the soft landing option. Sias wanted confirmation that Utico now agrees to this option, and how much the amount would be.

Utico said yesterday that it "will consider a soft landing for PnP holders if it serves the larger good and gets the scheme passed and closed by April 2020".

"However, this can be assessed only after the PnP holders vote for option one or two as offered by Utico for the past seven to eight months."

The firm urged Sias and Hyflux to put its offer to a vote within two to three weeks.

Once there is clarity on the votes in favour of the scheme, Utico can then set the soft landing option as a separate class for PnP holders who choose option two. This will also allow Utico to categorise those who choose option one as one class, it said.

"Those who don't want to exit with option one... could then get a (clearer) offer for the soft landing option," Utico noted in its statement. The first option is to receive an upfront cash payment of up to 50 per cent of one's investments, capped at $1,500.

Sias also asked two weeks ago if Hyflux chief executive Olivia Lum and Hyflux directors who have PnP holdings will give up their entitlements under the proposed scheme.

Utico said yesterday that Hyflux shareholders or directors had earlier forfeited their investments in the PnPs or medium-term notes publicly through a statement early last year.

The onus now lies on the Hyflux directors to state if they are withdrawing this forfeiture, Utico noted.

The scheme meeting for creditors will be held by April 1. Then an extraordinary general meeting will be held for Hyflux shareholders to approve the deal. Restructuring is expected to be completed by April 30 if given the green light.

THE BUSINESS TIMES