SINGAPORE: Singapore’s regulators said on Tuesday (Apr 16) that they have commenced a review into Hyflux to see if the debt-laden water treatment firm has breached any regulations.
In a joint reply to queries from CNA, the Monetary Authority of Singapore, the Accounting and Corporate Regulatory Authority and the Singapore Exchange Regulation said they are "currently reviewing Hyflux-related disclosure issues, as well as compliance with accounting and auditing standards, to determine if there have been breaches of listing rules and/or the relevant laws and regulations".
When contacted, Hyflux said it is "cooperating fully" with the regulators.
This marks the latest twist in events surrounding Hyflux’s high-profile debt restructuring attempt, which started last May and has since been marked by unexpected developments, including a public protest by angry retail investors.
Hyflux also earlier this month unexpectedly terminated a rescue deal with SM Investments, citing “no confidence” in the Indonesian consortium to complete a S$530 million investment agreed upon last October. This followed weeks of disputes involving information disclosures and alleged defaults by desalination plants operated by Hyflux.
Hyflux on Monday said it has filed a writ of summons in the Singapore High Court to commence legal action against its would-be white knight, and is claiming a S$38.9 million deposit.
As the clock ticks down to the end of a court-sanctioned debt moratorium on Apr 30 without a new investor in sight, the former star company seems to be hanging by a thread, with market analysts saying the odds of a liquidation have increased.
During a case management conference last week, the company's legal advisors told the court that it has not decided whether to seek an extension in debt reprieve. If it does, it will have until Apr 25 to make the necessary applications to the Singapore court.