Hyflux still working on terms of debt plan with creditors

Water treatment firm Hyflux has branded as speculation recent reports that outlined purported details of a formal plan proposed to its senior unsecured financial creditors.

The firm said yesterday that it is still working towards formulating the terms of a scheme of arrangement involving creditors.

It told the Singapore Exchange (SGX) that the process "is expected to continue over at least the next one to two months and will progressively extend to the various stakeholder groups".

Hyflux noted that it would need to sound out the various stakeholders to ascertain "which options and permutations may be viable", adding that it is not in a position to put forward a finalised restructuring proposal.

The company said it will make an announcement on the SGX once the formal proposal is finalised and an application is ready to be submitted to the court.

Last month, debt-strapped Hyflux secured a white knight in the form of SM Investments - a consortium of Salim Group and Medco Group - which has offered a $400 million equity injection in exchange for a 60 per cent stake in the company once Hyflux has settled all its debts.

SM Investments is also granting Hyflux certain loans to help finance it through the restructuring.

A version of this article appeared in the print edition of The Straits Times on November 24, 2018, with the headline 'Hyflux still working on terms of debt plan with creditors'. Print Edition | Subscribe