SINGAPORE: Embattled firm Hyflux has been granted a one-month extension to its debt moratorium until Feb 28, the court heard on Wednesday (Jan 29).
The company’s moratorium, which grants it a reprieve from creditors, was originally set to expire by the end of this month.
The latest extension to its debt moratorium is the eighth one given to Hyflux since the company first sought court protection to reorganise its business and obligations nearly two years ago in May 2018.
The Singapore High Court will then hear on Feb 20 if the moratorium should be further extended beyond Feb 28 and if Hyflux can get a nod from the court to proceed to convene a scheme meeting with all of its creditors.
The court will also hear WongPartnership’s application to discharge itself from acting for Hyflux because of “possible difficulties to requirements” under the Legal Profession (Professional Conduct) Rules 2015, which states that a legal practitioner may withdraw from representing a client in a case or matter if "there is a serious loss of confidence between the legal practitioner and the client; or any other good cause exists".
To this end, a pre-trial conference will take place in a week from now for, according to Justice Aedit Abdullah, “either matters to be resolved between WongPartnership and the company (Hyflux) or for new lawyers that need to be brought on board in principle”.
The latest developments follow the S$400 million rescue deal Hyflux inked with Utico last November that is pending approval of its creditors.
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.