Utico claimed that Hyflux is delaying the disclosure of assets and ignoring their proposal.
UAE-based utilities firm Utico has expressed concern on what it perceives as Hyflux’s “delaying ploy” after the embattled water treatment firm made an announcement about six other potential investors and legal-related requests.
In a statement, Utico said that Hyflux assets and EPC contracts are “leaking value due to delays,” as it pushes for a timely deal that would protect the water firm’s worth to creditors and investors.
The UAE-based utilities firm also accused Hyflux and its advisors of not facilitating nor informing the public of the situation, instead asking Singapore’s court for more time to pay their fees even as their value erodes, an act that Utico said is endangering Hyflux’s investors, creditors, PNP and all other stakeholders.
Hyflux recently sought to extend its debt moratorium for the fifth time. Justice Aedit Abdullah gave the company until 30 September.
Richard Menezes, managing director of Utico, also claimed that the Hyflux board and management is delaying the disclosure of assets and noted that there were gaps in the disclosures and the EPC credibility to remove corporate liability. He accused both Mitsubishi Heavy Industries (MHI) and Hyflux of ignoring Utico’s proposal to infuse funds by next month.
“There seems to be a different agenda for Hyflux Board and its advisors,” he said, adding that this is confusing the utilities firm.
The firm expects 5 p.m. of 16 August to be a “milestone” in which Hyflux will finally announce its choice of investor. “This announcement should also include structure, since it impacts Hyflux valuation and risks, as well as for creditors and PNP pay-outs,” the release added.
Earlier, Utico had set a 16 August deadline to ink a deal with Hyflux, “failing which, they will walk,” although this was later extended to August 26.
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