The restructuring scheme would only discharge the company but not its management.
Even if Hyflux were to successfully have its schemes approved and complete the restructuring process, David Gerald, president and CEO of the Securities Investors Association Singapore (SIAS), told shareholders in an open letter that the investigations on the utilities firm will continue.
“SIAS is aware that some Hyflux investors are of the view that if they were to vote ‘yes’ for the restructuring, all investigations against the board and management of Hyflux would stop and they will never find out if, indeed, there were any wrongdoings and whether anyone is responsible for losing all their monies. SIAS is advised that this view is not correct,” Gerald said.
“If there is any investigation, currently, it will continue and it need not put the company in liquidation for the investigation to take place. The scheme as it stands only discharges the company and not the directors, the management, auditors nor the arrangers of the instruments sold to Hyflux investors,” he added.
A number of Hyflux investors are also of the erroneous view that should they vote against the restructuring on 5 April, so that the government may step in and take control of Hyflux, Gerald noted. “The government has made it clear that they are not going to bail out Hyflux and if they do step in, they will take away the plant at a zero value and not compensate everyone.”
As a conclusion, the SIAS president urged all investors to turn up at the scheme meetings to vote.
Gerald added that the deal by Salim group is “the only deal on the table” and as such investors may not want to lose the hope of recovery of their investments should the shares return to trading and the share price go up, rather than allowing the company to go into liquidation. “It would be a shame should liquidation take place to see thousands of Singaporean employees of Hyflux losing their jobs,” he said.
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