ENERGY & OFFSHORE, UTILITIES | Staff Reporter, Singapore

Hyflux in talks with lenders for reorganisation

It warned that it will have more debts that will fall due “time to time”.

Hyflux is in talks with its lenders and trade creditors this week to discuss its financial obligations and reorganisation process.

It said in an announcement that it has received letters of demand, letters notifying of defaults, notices of acceleration of facilities, and reservation of rights letters from various counterparties, including its financial lenders.

“The group also has various obligations owed to financial lenders and trade creditors that have fallen due and will fall due from time to time,” it said.

Hyflux is continuing discussions with a number of its other key stakeholders, including counterparties to its ongoing projects and trade creditors, and will continue to work with its key stakeholders and advisors to pursue the reorganisation process.

“The relevant stakeholders are being engaged on steps to be taken to ensure that ongoing projects are completed as scheduled so that the milestone payments are received, which would improve the financial position of the group,” it added.

Moreover, Hyflux is engaging in preliminary discussions with interested financiers regarding the provision of funding and the entry into non-disclosure agreements to further such discussions.

The company warned that the holders of its shares and securities as well potential investors should note that there is no certainty or assurance that the ongoing discussions with the aforementioned parties will result in any definitive agreements regarding the provision of funding to the group.

Hyflux started a court-supervised reorganisation of liabilities and businesses, tapping on EY and WongPartnership LLP as its financial and legal advisors respectively, as it tries to plug massive losses brought about by the weaker performance from its local and overseas markets.

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