SINGAPORE — Hyflux said it has received a non-binding letter of intent for a possible injection of S$400 million from a potential investor in the Middle East.
The Singapore-based water treatment company said it is in talks with the developer and owner of water and power utilities based in the Middle East, according to its filing released on the Singapore Exchange on Thursday (25 April). The Middle East company has a “reputable track record”, added Hyflux, without revealing its identity.
The potential investment will be used for equity and working capital and possible urgent interim funding.
Hyflux is also discussing with other potential overseas investors on their interest in its business and assets, including parties “that would have synergy with the group”.
Meanwhile, a group of unsecured banks are seeking leave from the High Court of Singapore to file applications for Hyflux and Hydrochem to be placed under judicial management and/or interim judicial management, Hyflux also announced.
The banks are Mizuho Bank, KfW IPEX-Bank GmbH, Bangkok Bank Public Company, BNP Paribas, CTBC Bank, The Korea Development Bank and the Korea Development Bank, Singapore Branch.
They applied to the High Court of Singapore on Wednesday to vary the debt moratoriums currently in force in respect of Hyflux and Hydrochem.
On Tuesday, Hyflux and three of its subsidiaries applied to the High Court for a three-month extension from its creditors, just a week before its court-sanctioned protection from creditors expires on 30 April.
The applications are to be heard at the case management conference scheduled on Thursday. If successful, the debt moratorium will be extended to 30 July.
Hyflux is burdened by debts totalling nearly $3 billion as of March 2018. Last week, the Public Utilities Board issued a notice to its subsidiary Tuaspring to take over its $1.1 billion desalination plant – the heart of Hyflux’s mounting financial problems – and terminate its water purchase agreement.
This comes after a restructuring agreement between Hyflux and SM Investments was scrapped earlier this month.