SINGAPORE: Hyflux has requested a two-week extension to find a buyer and sign a binding deal for its Tuaspring Integrated Water and Power Plant.
The deadline was meant to be on Monday (Oct 15). The troubled water treatment firm had said last week that it was assessing a bid submitted by one of two interested buyers that have been approved by relevant authorities.
In an SGX filing on Monday, Hyflux said Maybank - its largest secured lender - has given in-principle approval for the extension until Oct 29.
READ: Hyflux’s Tuaspring plant: The ‘noose around the neck’ that needs to be sold, but can it be done?
Hyflux, a home-grown firm which first made its mark in water treatment and later ventured into power generation, announced in May that it had applied to go through a court-supervised restructuring process.
It cited “prolonged weakness” in the local power market for the turnabout in fortunes.
With liabilities of S$2.95 billion, the divestment of its Tuaspring plant, which cost more than S$1 billion to build, has been seen as key to resolving the company’s cash crunch.
Hyflux did not reveal details about the two interested buyers, but a Bloomberg report earlier this month said Sembcorp Industries was the only party that submitted a bid.
Citing unnamed sources, the report said the bid from Sembcorp was below Tuaspring's book value of S$1.3 billion and will not be enough to fully pay back loans.