Utico will pull plug on Hyflux if no deal by today

Water firm in talks with two other investors, one may make a rescue proposal this week

The original proposed rescue package with Utico involves the utility taking an 88 per cent stake in Hyflux.
The original proposed rescue package with Utico involves the utility taking an 88 per cent stake in Hyflux. ST FILE PHOTO
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Utico, through its financial advisers, has issued a 48-hour ultimatum until 5pm today for Hyflux to agree to its version of the restructuring agreement, or it will pull out, a Hyflux lawyer said.

This comes after the Middle Eastern utility was told that both Hyflux and its creditors required further negotiations on several key terms, including "allocations to senior unsecured creditors, and other matters requiring Utico's consent", Mr Manoj Sandrasegara, a partner with WongPartnership, told The Straits Times yesterday.

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A version of this article appeared in the print edition of The Straits Times on November 01, 2019, with the headline Utico will pull plug on Hyflux if no deal by today. Subscribe