Hyflux set to lose control of Tuaspring integrated water and power plant

Hyflux said Maybank, its biggest secured creditor, has appointed receivers and managers from insolvency firm Ferrier Hodgson to take over the power plant.
Hyflux said Maybank, its biggest secured creditor, has appointed receivers and managers from insolvency firm Ferrier Hodgson to take over the power plant.PHOTO: ST FILE

SINGAPORE - Embattled water treatment firm Hyflux will lose control of its one-time largest asset Tuaspring Integrated Water and Power Plant this week.

It said on Tuesday (Mar 14) that Maybank, its biggest secured creditor, has appointed receivers and managers from insolvency firm Ferrier Hodgson to take over the power plant.

National water agency PUB will assume control of the desalination plant and shared infrastructure on May 18 after the water purchase agreement with Hyflux terminates on May 17.

Hyflux also clarified on Tuesday that it had received only a draft term sheet on May 6 from the advisers of United Arab Emirates utility Utico. This is contrary to a Reuters report on May 12 that said a binding offer to invest had been submitted.

The Reuters report stated that Utico managing director Richard Menezes had said that a binding term sheet to invest $400 million in Hyflux had been submitted, and that working capital and any urgent interim funding would be part of the offer.

Hyflux said in a Singapore Exchange filing on Tuesday that Utico's advisers told the firm that this draft term sheet is to be regarded as binding.

But it clarified: "To avoid doubt, the company has not accepted or entered into the binding term sheet. (Its) advisers are in active discussions with Utico's advisers to finalise the proposed terms of Utico's investment."

 

Hyflux is also having active discussions with Oyster Bay Fund on a proposed investment.

It said it "envisions" an investment of up to $500 million by the fund, subject to regulatory clearance, due diligence and the execution of a definitive agreement.