SINGAPORE: Tuaspring, a subsidiary of local water treatment firm Hyflux, has withdrawn its application for a debt moratorium.
The application was originally scheduled to be heard at the Supreme Court on Friday (Jul 6) at 2.30pm. The hearing has been cancelled.
Channel NewsAsia understands that Hyflux and its legal advisors submitted the withdrawal application on Thursday evening and received a notice from the court on the following day that the hearing has been vacated.
Seen as one of Singapore’s most successful business stories, Hyflux made the unexpected move last month to seek court protection for a reorganisation of its business and liabilities.
The household name, which first made its mark in water treatment and later ventured into power generation, cited “prolonged weakness” in the local power market for the turnabout in fortunes.
On Jun 19, Hyflux and four of its subsidiaries – Hydrochem, Hyflux Engineering, Hyflux Membrane Manufacturing and Hyflux Innovation Centre – were granted an additional six-month reprieve from creditors by the High Court.
At the hearing, Tuaspring, which owns the Tuaspring Integrated Water and Power Plant, obtained leave to discontinue its application for a debt moratorium and pursued a separate application under Section 210(10) of the Companies Act.
The Tuaspring project is the single largest asset on the balance sheet of Hyflux Group. Losses over the years have made it the “noose” around the company’s neck, according to analysts who have said that a divestment of the plant will help to solve Hyflux’s cash crunch.
However, despite being put on the market since early-2017, the company’s insistence on getting no less than book value for the plant has resulted in no results.
Channel NewsAsia has reached out to Hyflux for reasons behind the application withdrawal.