Hyflux has finally reached a restructuring agreement with Utico that will see the Middle Eastern utility take a 95 per cent stake in the Singapore water treatment firm in a $400 million rescue deal.

Utico will take a 95 per cent stake in Hyflux's enlarged share capital for $300 million, and will also extend Hyflux a working capital line of up to $100 million. Some 34,000 retail holders of perpetual securities and preference shares, who are owed $900 million in total, can choose from two options under the deal.

Hyflux had been looking for a white knight investor after an earlier rescue deal with Indonesian consortium SM Investments fell through.

On her future role, Hyflux founder Olivia Lum said: "We just signed a restructuring agreement, we have to focus on completing the restructuring as soon as possible. The rest will be discussed over next few months."

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