SINGAPORE: The judicial managers of Hyflux have filed an application with the Singapore courts to wind up the embattled water treatment firm.
In a filing to the Singapore Exchange late Friday (Jun 4) night, the judicial managers from Borrelli Walsh, who were appointed in November last year, said a restructuring is “not possible” after talks with an investor fell through.
They added that the continuation of the judicial management of Hyflux “is no longer necessary” and the remaining value of the company is “best realised in a liquidation”.
More than three years have passed since Hyflux, one of Singapore’s most iconic businesses, unexpectedly filed for a court-supervised financial restructuring in May 2018.
The long-running debt restructuring case has since been marked by several twists and turns, including U-turns on agreed deals, frustrating creditors and tens of thousands of retail investors.
Last year, Singapore authorities launched a joint investigation into the company and its current and former directors for suspected false statements and disclosure requirement breaches, as well as potential non-compliance with accounting standards.
Hyflux was placed under judicial management in November last year.
READ: From making waves to drowning in red ink: Hyflux, Tuaspring and how a business giant came undone
In January, the judicial managers said that there were 17 interested parties.
That was whittled down to seven bids – one bid for an investment in the entire group and six bids for specific assets of the group – by early May and the judicial managers’ term of office was extended until Jul 14 to determine if a potential restructuring was possible.
But with talks on the investment in the entire Hyflux group being unsuccessful, a restructuring is no longer achievable, the judicial managers said in the latest bourse filing.
The remaining six bids involving the purchase of Hyflux’s individual assets “can be facilitated through a winding up of the company”.
“Following the conclusion of the investor process, the judicial managers have formed the view that the objectives of the judicial management are no longer capable of achievement and the remaining value of the Hyflux Group are best realised in a liquidation,” they added.