Hyflux gets more time to report financials

Cash-strapped water treatment firm Hyflux said in a regulatory filing that the duration of the latest extensions is linked to its debt moratorium, which will provide the group with time to reorganise its liabilities and businesses.
Cash-strapped water treatment firm Hyflux said in a regulatory filing that the duration of the latest extensions is linked to its debt moratorium, which will provide the group with time to reorganise its liabilities and businesses.PHOTO: LIANHE ZAOBAO

Extensions given for Q2, Q3 and full year 2018 results and AGM

Cash-strapped water treatment company Hyflux has been granted further extensions to report its financial results and to conduct its annual general meeting (AGM) as it undergoes reorganisation.

The firm now has until June 30 or before the lifting of its trading suspension to announce its results for the second and third quarters of the 2018 financial year. This is an extension of 41/2 months.

The full-year 2018 results have been given a four-month extension, it announced late on Wednesday.

Hyflux also received a four-month extension to conduct the annual general meeting for 2018. This was originally supposed to be held by April 30 this year. It has also received a three-month extension to report results for the first quarter of the 2019 financial year.

The latest extensions from the Singapore Exchange come after Hyflux asked in July last year for extensions in announcing financial statements.

Shares in Hyflux remain suspended and last traded at 21 cents on May 18 last year.

The firm said in a regulatory filing on Wednesday that the duration of these further extensions is linked to its debt moratorium, which will provide the group with time to reorganise its liabilities and businesses.

The full-year 2018 results have also been given a four-month extension, it was announced late on Wednesday.

The High Court had previously granted Hyflux a 41/2-month extension of its debt moratorium to April 30 this year.

The company added that it is facing stringent controls on cash, such as paying only critical expenses relevant to the reorganisation.

"The group is currently progressing with the reorganisation, and the aim is to conclude the reorganisation as soon as possible and continue trading with a more stable financial position," Hyflux said.

It had announced on Oct 18 last year that it had entered into a restructuring agreement with an investor for a total investment of $530 million, subject to various conditions.

Hyflux said that since it is negotiating the terms of its reorganisation, releasing financial statements before there is clarity on any financing proposals could result in inaccurate and incomplete information.

"The company can only start to prepare the relevant financial statements when it has certainty regarding the terms of the reorganisation and the financing proposals (if any), which is expected to take additional time," Hyflux said.

Hyflux said on Monday it has obtained approval from secured lender Maybank to extend the timeline for the divestment of the Tuaspring integrated water and power plant.

Maybank is now giving Hyflux until Jan 31 to execute a binding agreement with a successful bidder or investor, an extension of the Oct 29, 2018, deadline earlier agreed on.

The bank can terminate the collaboration agreement if the new deadline is breached.

A version of this article appeared in the print edition of The Straits Times on January 04, 2019, with the headline 'Hyflux gets more time to report financials'. Print Edition | Subscribe