SINGAPORE - Water treatment firm Hyflux on Friday (Feb 1) called for its creditors to file proofs of claim ahead of scheme meetings as the company undergoes debt restructuring.
The proofs, which will form a basis to vote on scheme proposals and to receive payments, must be submitted by 5pm on Feb 15.
For holders of the company's bonds, perpetual securities and preference shares, however, their holdings as recorded by the Central Depository Pte Ltd (CDP) will be treated as proofs even if the holders do not file their claims, Hyflux said.
Any party who is required to but does not file a proof of claim by the deadline will not be entitled to vote at scheme meetings and may not be entitled to any payments or distributions, subject to the discretion of the scheme meeting's proposed chairman, Hyflux said.
The proposed chairman for the group's scheme meeting(s) is EY partner Angela Ee, who is advising Hyflux on its refinancing.
The group filed for bankruptcy protection in May last year, and investors still have no certainty about how much is recoverable. In a liquidation scenario, senior unsecured creditors can expect a recovery rate of 3.8 to 8.7 per cent, EY has told investors. Investors that rank below that class of claimants, including perpetual and preference shareholders, will receive nothing.
In October last year, a consortium comprising Salim Group and Medco Group tabled a deal to invest and lend $560 million to Hyflux in exchange for a 60 per cent stake in the company once it has settled all its debts.
Hyflux owes $900 million in principal value to perp and pref holders.