Utico extends deadline for Hyflux rescue offer

Utico has extended the deadline for Hyflux to accept its proposed rescue package by 11/2 months to Oct 15.

The water treatment company had attached a letter it received from Utico about the decision in a filing to the Singapore Exchange on Wednesday night.

In the letter, the Middle Eastern utilities firm said that Hyflux did not accept its offer by the 5pm deadline on Aug 30 and did not request an extension.

However, shareholders have asked that Utico extend the deadline because they feel Utico's offer is "the only viable restructuring plan for Hyflux and has the highest recovery available".

Utico also referred to an e-mail from Hyflux on Tuesday, which requested that the Middle Eastern group revise or adjust its terms to achieve the best possible outcome for creditors.

As a result, Utico decided to extend the period for acceptance.

In July, Utico revised its rescue package for Hyflux, upping its offer to a minimum of $485 million comprising cash and stock.

Under the latest proposal, the return to both the unsecured senior creditors and the retail investors of Hyflux's preference shares and perpetual securities (PnP) will be more than 10 per cent higher than what had been available under the restructuring agreement inked on Nov 26 last year, Utico said.

Hyflux has about 21,000 small PnP holders, as well as 12,000 to 13,000 larger PnP holders, who are owed some $900 million in total.

THE BUSINESS TIMES

A version of this article appeared in the print edition of The Straits Times on September 11, 2020, with the headline 'Utico extends deadline for Hyflux rescue offer'. Print Edition | Subscribe