Hyflux, PUB need to be more open to help investors

The Hyflux Innovation Centre located at 80 Bendemeer Road, on Feb 16, 2019.
The Hyflux Innovation Centre located at 80 Bendemeer Road, on Feb 16, 2019.ST PHOTO: LIM YAOHUI

As Hyflux and Tuaspring Private Limited have been given only one month to resolve financial and operational matters, the outcome of the current debt restructuring scheme will determine whether PUB exercises its right to take over Tuaspring (PUB monitoring Hyflux's other plants and will step in if they default, March 8).

Hyflux's investors are thus put in a position of deciding the outcome of Tuaspring, even though they do not have information on the commercial terms of the default notice due to confidentiality clauses.

Hyflux and PUB should both agree to waive the relevant confidentiality clauses and be open about the amount of compensation that will be given to Hyflux if Tuaspring is taken over by PUB.

Will it be based on the cost of construction, some other nominal figure, or even no compensation at all?

Without this crucial piece of information, it is tough to ask investors of Hyflux to vote to decide on the fate of Tuaspring.

Martin Lee

A version of this article appeared in the print edition of The Straits Times on March 13, 2019, with the headline 'Hyflux, PUB need to be more open to help investors'. Print Edition | Subscribe