Would-be white knight Utico makes a last-ditch attempt to prevent Hyflux liquidation

Singapore — The winding-up of embattled water treatment firm Hyflux has been stopped by another effort from its would-be white knight, Utico, a Middle Eastern utility company.

The High Court heard on Monday (Jul 12) of Utico’s intent to file an affidavit.

In Jun, the water treatment firm’s judicial managers from Borrelli Walsh filed an application for Hyflux’ liquidation after talks with potential investors were said to have failed.

However, the plan for liquidation has been halted for the time being, as the winding-up hearing was adjourned after the court heard of Utico’s affidavit. 

High Court Justice Aedit Abdullah permitted for the draft affidavit from Utico to be circulated to creditors, and a new date for Hyflux’s winding up hearing will be set at a pre-trial conference on Tuesday, Jul 13.

However, he added that at the moment, Utico has no standing in the case since it’s neither a creditor nor a shareholder.

Justice Aedit also said that commercial judgments are usually left to judicial managers.

Lawyers from Braddell Brothers, who represent Utico, said that it’s in the “general interest” of Hyflux’s creditors that the intentions of the Middle Eastern utility company be heard out.

But Hyflux’s judicial managers disagreed with this, and have said that the deal with Utico, which was first brought to the attention of the public in 2019, was not considered due to a lack of proof that the company would finalise the deal.

According to the judicial managers, the utility company is not able to meet the minimum conditions needed so that the offer from it would be considered.  

“We are looking at an investor who is at this stage trying to upend the whole process after there have been extensive negotiations and even a conditional sale agreement signed with other bidders”, said Senior Counsel Kenneth Tan.

Mr Tan, along with lawyers from Fullerton Law Chambers, represent the judicial managers.

According to Utico, it is willing to put up a S$10 million non-refundable deposit as long as it has 60 days to negotiate concerning restructuring Hyflux’s debts with the judicial managers.

But Justice Aedit dismissed this since he was not assured by Utico’s offer. Had the Middle Eastern utility company been able to put money down at once for Hyflux’s operations, the judge said he would have considered adjournment. /TISG

Read also: Creditors, shareholders face losses as Hyflux likely to get less than S$200 million in liquidation

Creditors, shareholders face losses as Hyflux likely to get less than S$200 million in liquidation