It was backed by its advisors and the bonds’ trustee.
Hyflux will not distribute the payment of its $500m 6% perpetual bonds which was scheduled on 28 May 2018 until further notice.
According to an announcement, it based the move on the advice of its advisors and the trustee for the perpetual bonds which was released on 22 May 2018.
Hyflux also noted that the bond trustee has recognised that there is a 30-day automatic moratorium banning creditors from taking action that could deal further damage to the firm's sensitive financial position. “The Company will continue to engage with, and provide information to, the perpetual trustee in this process,” it said.
Moreover, Hyflux said it has been “actively engaging” with the Securities Investors Association (Singapore) (SIAS) to facilitate the better engagement of the holders of perpetual securities, $100m 4.25% notes due 2018, $65m notes due 2019, and $100m 4.2% notes due 2019.
Hyflux is starting a court-supervised liabilities 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.
The reorganisation process aims to ban proceedings that are arbitral and administrative in nature against the company as well as any legal processes against Hyflux’s properties for a six-month period, in a move that aims to preserve the company’s tethering financial standing.
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