SINGAPORE: Hyflux revealed on Friday (May 10) that it is engaging with global multi-strategy fund Oyster Bay over a possible investment of up to S$500 million.
In a filing to the Singapore Exchange, the embattled water treatment firm said it received a non-binding letter of intent from the fund outlining a show of "good faith" and an intent to purchase preference and ordinary shares in HyfluxShop Holdings for up to S$26 million, which is to be used as working capital.
The deal is subject to regulatory clearance, due diligence and the execution of a definitive agreement, it added.
"The investor has indicated that it is keen to work with the Company and its advisors on the terms and execution of a binding agreement as soon as possible," said Hyflux. "The letter of intent is stated to automatically terminate if a judicial manager or liquidator is appointed over the company."
Oyster Bay Fund is said to have an investment objective of long-term capital appreciation.
Hyflux also said it would continue to engage with other parties who had expressed interest in investing in the group's business and assets, "with priority afforded to the parties with the willingness and ability to provide interim funding and reach a binding agreement with the Company within the shortest possible time".
READ: Court dismisses application from seven unsecured banks to be carved out of Hyflux debt moratorium
The company recently revealed that United Arab Emirates utility company Utico FZC was one of its possible white knights, with the potential to give it a S$400 million lifeline that would be used for equity and working capital purposes, as well as possible urgent interim funding.
Hyflux had said that the investor was "aware of the urgency of the restructuring" and intends to invest "on a win-win basis".
Earlier this week, the Singapore High Court denied a group of seven unsecured banks the go-ahead to be carved out of Hyflux's debt moratorium, saying the company made a credible case that the carve-out could have an adverse impact on its restructuring efforts.