SINGAPORE: United Arab Emirates-based utility Utico FZC said on Tuesday (Aug 27) it had agreed to a restructuring deal with Singapore's indebted water treatment firm Hyflux, giving it 88 per cent of the company.
Once lauded as a national champion running a strategically important water source for the country, Hyflux is now under a court-supervised restructuring process that could wipe out the holdings of tens of thousands of retail investors.
READ: Hyflux is ‘leaking value’ and has to ‘act without delay’ to pick an investor: UAE suitor Utico
Utico said it agreed to a deal with Hyflux on Monday, the last day before an exclusive discussion agreement ended.
The financial details were not disclosed.
"The deal finds a resolution for creditors and PNP (perpetual and preference shareholders) investors and development projects that have been languishing since the moratorium in May 2018," Utico said in a statement.
"With the support of Hyflux Board and management, swift action will be taken to bring all projects up to speed as well as take on new projects."
Hyflux did not immediately respond to request for comment.