Singapore—According to a Bloomberg report, embattled water treatment company Hyflux is likely to fetch less than S$200 million in liquidation.
This amount is far less than what Hyflux, once one of the most promising firms in Singapore, owes its creditors and shareholders.
Hyflux has been under judicial management by Borrelli Walsh Ltd since November 2020. Its court-supervised debt restructuring began in 2018.
Borrelli Walsh announced on June 4 that it applied for Hyflux’s liquidation.
On June 10, it said in a bourse disclosure that discussions with Middle Eastern utility company Utico, which had been touted as Hyflux’s would-be white knight for two years, had fallen through.
At one point in 2019, Utico was expected to buy an 88 per cent stake in the company for S$535 million.
But Borelli Walsh said in the bourse disclosure that “Utico remains unable to meet the minimum conditions required by the Judicial Managers”.
Borelli Walsh has also noted that the remaining value of the Hyflux Group would be best realised in liquidation, adding that there are six bids that involve specific assets. It aims to sell off these assets as quickly as possible, although there is no set timeline to do so.
Since the expected amount from liquidation is far smaller than what the company owes creditors, this confirms that it is unlikely that they will get back the amounts they invested.
There is around S$2.8 billion in total investor claims.
Investors include around 34,000 individuals who invested in perpetual notes, preference shares, and other products.
An online town hall meeting has been scheduled on June 18 for Hyflux’s securities holders. It is likely to be one of the last times the firm sits down with its securities holders before the company liquidates.
The Bloomberg report added that, according to its source, Keppel Infrastructure Trust is one of the bidders for Hyflux assets.
Keppel Infrastructure Trust is eyeing the waste-to-energy plant TuasOne as well as the remaining 30 per cent stake in the SingSpring desalination plant in addition to what it already owns of the plant.
In an answer to questions from Bloomberg concerning Keppel Infrastructure, the company’s spokesperson said in an email that it had the contractual rights to buy the 30 per cent stake in the SingSpring plant as well as take over its operations.
/TISG
Read also:Embattled Hyflux reportedly only has S$21 million left
Hyflux white knight Utico to buy 88% stake for S$535 million