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26 November 2019

Singapore's Hyflux secures SGD 400 million rescue package from Utico

The agreement comes after debt-laden Hyflux—once lauded as a national champion running a strategically important water source for the city-state—entered a court-supervised restructuring process this year that threatened to wipe out the holdings of tens of thousands of retail investors.

Bloomberg/Ore Huiying

Singapore-based Hyflux, the embattled water treatment firm has secured a restructuring deal worth SGD 400 million ($293 million) from UAE-based utility Utico, reported Bloomberg.

In a statement, Hyflux said that the deal will see Utico subscribe to SGD 300 million in Hyflux shares, giving the utilities firm a 95 per cent stake and inject working capital of SDG 100 million.

Hyflux, Singapore’s highest-profile debt restructuring, had been looking for an investor after a deal with Indonesian consortium SM Investments fell through in April 2019—a catastrophic slump that stunned 34,000 individual investors and prompted a rare public protest in the country.

Under the proposed terms of the court-approved restructuring, SDG 250 million is to be paid to the unsecured debt holders. Perpetual and preference shareholders can opt for an upfront cash payment or payment in instalments.


RELATED STORIES: SM Investments Hyflux Utico





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