Aqua Munda commits $208m to Hyflux debt buyout

Aqua Munda is committing $208 million to fund the purchase of debts held by some of Hyflux's creditors, as well as other working capital requirements of the water cleaning firm, "if so agreed".

Aqua Munda disclosed this in a statement last Saturday.

Last month, the firm invited the embattled water treatment firm's note holders and unsecured creditors to tender offers for their debts to be purchased at a minimum discount of 85 per cent.

The total principal amount of debt eligible for purchase is $1.8 billion, almost two-thirds of Hyflux's total $2.8 billion debt.

The option to tender is open to holders of Hyflux's 4.25 per cent notes due in 2018, 4.6 per cent notes and 4.2 per cent notes due last year, as well as holders of other senior unsecured, trade and contingent debts of Hyflux and three of its subsidiaries.

Aqua Munda is extending the invitation expiry date from Jan 23 to Jan 31, it said in the statement.

The company decided to allow more time for tender offers to be submitted "following feedback and requests received" from some creditors and note holders.

In addition, the deadline for offers to be accepted has been revised to April 3.

Hyflux said in a bourse filing last Saturday that it "will make the appropriate announcements as and when there are any further material developments on this matter".

AMOUNT IN S'PORE DOLLARS THAT AQUA MUNDA IS
COMMITTING TO BUY OUT HYFLUX'S DEBTS

The total principal amount of Hyflux's debt that is eligible for purchase by Aqua Munda.

Aqua Munda, which states its registered business activities as the "manufacture of water treatment, waste treatment and oilfield chemicals", is a special-purpose vehicle managed by Rain Asia Pacific.

Hyflux, which was given a two-month extension of its debt moratorium last November, is seeking another three-month reprieve at the next court hearing on Jan 29.