SINGAPORE: United Arab Emirates utility firm Utico has extended the deadline for entering into a binding agreement with Hyflux to Jun 27, the embattled water treatment company said on Tuesday (Jun 18).
Utico, one of seven potential investors, had previously given Hyflux until Jun 17 to sign a binding agreement for its S$400 million investment.
The decision to extend the deadline was made in the interest of all stakeholders, including creditors, clients and perpetual securities and preference (PNP) shareholders, Utico said in a statement.
A town hall session for PNP shareholders will be arranged for the week starting Jul 7 if an agreement is signed by Jun 27.
"For all stakeholders, including PNP, we believe that further loss of time and uncertainty will lead to greater losses in value as well," managing director of Utico Richard Menezes said.
"This proposed timeline will help to ensure a clear road map with a viable business outlook for the company, in turn leading to the achievement of the required successful restructuring."
Hyflux - whose earlier restructuring agreement with would-be white knight SM Investments was scrapped in early April - announced in May that Utico had submitted a draft term sheet but that it had not accepted or entered into any agreement with it.
Hyflux, whose year-long restructuring journey remains closely watched by tens of thousands of retail investors, has said that it remains in talks with all potential investors and will make appropriate announcements as and when there are further material developments.
READ: From making waves to drowning in red ink: Hyflux, Tuaspring and how a business giant came undone
On Saturday, Hyflux revealed that another potential white knight - an unnamed China-based investor - had submitted a non-binding letter of intent for a possible investment.