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Hyflux applies for another two-month extension in debt moratorium

Hyflux applies for another two-month extension in debt moratorium

(Photo: Jeremy Long)

SINGAPORE: Debt-ridden Hyflux and three of its subsidiaries are seeking another two-month extension in their debt moratorium and on Thursday ( Sep 19) filed applications with the Singapore High Court.

The latest applications will be heard on Sep 30, when the company’s debt moratorium is set to expire, Hyflux said in a bourse filing late on Thursday.

It added that appropriate announcements will be made “as and when there are any further material developments”.

The water treatment firm has been under a court-supervised restructuring process since May 2018.

Founded in 1989, Hyflux made a name for itself with its proprietary membrane technology and was regarded one of Singapore’s most successful business stories, before a heavy reliance on borrowing and a failed venture into power generation hurt its finances.

READ: Hyflux says definitive agreement not reached with Utico

READ: From making waves to drowning in red ink: Hyflux, Tuaspring and how a business giant came undone

Over the past year, the home-grown company has been granted five moratorium extensions while it works on securing a rescue investor to meet billions in liabilities.

Hyflux had reached a deal with Indonesian consortium SM investments last October, but that arrangement fell through in April.

Hyflux then started negotiations with other potential investors, including United Arab Emirates utility firm Utico.

READ: Hyflux’s waste-to-energy project in Tuas ‘closely’ monitored by NEA as firm’s restructuring drags on

Last month, Hyflux rebutted a claim made by Utico that a deal had been concluded.

In a statement on Aug 28, it said it has not entered into a definitive agreement with the UAE firm, “pending resolution on certain final outstanding issues in the draft definitive agreement”.

Both firms, however, are “in highly advanced discussions and will continue to engage with each other with a view to resolving such final outstanding issues and finalising and entering into the definitive agreement as soon as possible”, it had said.

Source: CNA/sk(aj)

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