PUB warning seen as wake-up call for Hyflux investors

Hyflux's hope of restructuring lies in an offer from consortium SM Investments, which has agreed to invest $530 million in the company in return for 60 per cent of equity in the firm upon completion of the deal.
Hyflux's hope of restructuring lies in an offer from consortium SM Investments, which has agreed to invest $530 million in the company in return for 60 per cent of equity in the firm upon completion of the deal.ST PHOTO: LIM YAOHUI

Analysts: Ultimatum over plant may lead them to consider how to vote on restructuring plan

The PUB threat to take control of the Tuaspring water and power plant unless defaults are fixed is a wake-up call for Hyflux investors unsure of how to vote on the restructuring plan on April 5, some industry observers say.

A source close to the restructuring said last night: "The way to cure its defaults is through restructuring. The underlying message is for investors to consider the white knight's offer seriously, and not depend on the Government to bail them out."

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A version of this article appeared in the print edition of The Straits Times on March 07, 2019, with the headline 'PUB warning seen as wake-up call for Hyflux investors'. Print Edition | Subscribe