SINGAPORE - The High Court on Thursday allowed embattled water treatment firm Hyflux and its three subsidiaries another month of reprieve until May 24 from their creditors as the company works on two possible plans to avoid liquidation. The order was passed just days before an earlier court-sanctioned protection from creditors was set to expire next Tuesday .
The potential investment will be used for equity and working capital purposes, as well as possible urgent interim funding. Discussions are ongoing with the potential investor, who has a"reputable track record", said Hyflux in an announcement released just one hour before the hearing to extend its debt moratorium. The entity has not yet been identified.
But several creditors including a group of seven unsecured banks were granted leave by the High Court on Thursday to file applications for Hyflux and Hydrochem to be placed under judicial management and/or interim judicial management. A hearing on the JM application is scheduled for May 13. "As far as we know, these plans on paper remain hypothetical scenarios and we should call them as such," Mr Ng said.