SINGAPORE: Embattled water treatment firm Hyflux has a “credible” revival plan on the table and will apply for an extension of its debt moratorium this week in a bid to work things out, according to the Securities Investors Association Singapore on Monday .
The plan, which will need “at least three months” to materialise, will be a “win” for the aggrieved 34,000 holders of Hyflux’s perpetual securities and preference shares as there is a chance that they will not have to endure haircuts, said SIAS president David Gerald.Mr Gerald was speaking to CNA after a closed-door meeting with Hyflux’s founder-CEO Olivia Lum, directors and a legal advisor from WongPartnership.
He noted that the advisors have come up with a “new way of restructuring the company” – one that would ensure both the senior unsecured creditors, and the “subordinated” perpetual securities and preference shareholders, are “much better off than in a liquidation”. “For the perpetual securities and preference shareholders, they get nothing if there’s no plan. They wanted something reasonable so the company will now keep whole on the book and they will not be asked to take a haircut,” said Mr Gerald, though he declined to speculate how that might be done.
Still, he called for patience and urged all parties to give Hyflux time to work out a plan to avoid liquidation."Given the hard work that’s been put in and the injection of new advisors, I think we can hope for the best," said the president of the investor advocacy group.public protest staged by angry retail investorsThe latter has left market observers speculating that Hyflux is edging towards a liquidation, with its court-sanctioned moratorium set to expire on Apr 30.
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