Hyflux admits $2.81b in claims after adjudication

The admitted claims will be taken into account in the scheme proposals for Hyflux's debt restructuring plan. Hyflux is slated to hold a do-or-die vote on April 15, which will essentially ask creditors to pick between restructuring and liquidation of
The admitted claims will be taken into account in the scheme proposals for Hyflux's debt restructuring plan. Hyflux is slated to hold a do-or-die vote on April 15, which will essentially ask creditors to pick between restructuring and liquidation of the water treatment company.ST FILE PHOTO

Sum includes $970m claimed by holders of preference shares, perpetual securities

Water treatment company Hyflux has tossed out some of the claims filed against it after adjudication, but the bulk of the $3.59 billion demanded by some 74 groups of claimants still stands.

The claim figures, released just after midnight last Saturday, were revised upwards from preliminary numbers "following clarifications/ review", according to the bourse announcement from Hyflux. Some $3.51 billion had been claimed by 73 creditors and stakeholders in an earlier list, put out on March 8.

Hyflux has now admitted some $2.81 billion in claims altogether, including for facilities and trade. These claims will be taken into account in the scheme proposals for Hyflux's debt restructuring plan, with retail investors, in particular, having clamoured at Hyflux's gates over the downward spiral of the erstwhile home-grown darling.

The admitted sum compares against some $2.66 billion in claims counted that were under the Hyflux scheme in an "explanatory statement" published on Feb 22. The Business Times previously reported that some parties might have overstated their claims, leading to a difference in the overall claim values.

Hyflux admitted largely unchanged the $970 million in claims by holders of its preference shares and perpetual securities, as well as the $277.7 million claimed by medium-term noteholders.

However, besides certain trade and other claims, Hyflux also rejected $776 million in contingent claims, including the $502.6 million claimed by project company Tahlyat Myah Magtaa for contracts dealing with a Hyflux desalination plant in Algeria.

Meanwhile, HSBC Institutional Trust Services (Singapore), the trustee of Ascendas Reit, had claimed $120.9 million over the lease of Hyflux Innovation Centre and the Hyflux building at Kallang Bahru, but just $41.4 million of that claim was admitted.

  • $3.51b

    Amount claimed by 73 creditors and stakeholders in an earlier list, put out on March 8.

And, when it came to the $150 million claimed by RBC Investor Services Trust Singapore, the trustee of ESR-Reit, for a rent guarantee on Hyflux's Tuas Hub lease, only $83.3 million of that sum made the cut.

Hyflux is slated to hold a do-or-die vote on April 15, which will essentially ask creditors to hold their noses and pick between restructuring and liquidation of the company.

A version of this article appeared in the print edition of The Straits Times on March 19, 2019, with the headline 'Hyflux admits $2.81b in claims after adjudication'. Print Edition | Subscribe