Hyflux gets offer from new investor to purchase debts of $1.8 bil from creditors, subsidiaries

SINGAPORE (Dec 18): Hyflux, the debt-laden water treatment company that is undergoing restructuring, said it has received an offer to buy its debt.

Aqua Munda, a Singapore-incorporated company that develops filters to provide clean water, made an offer on Tuesday to holders of Hyflux's 4.25% notes due in 2018, as well as its 4.6% and 4.2% notes due in 2019.

In addition, the offer includes the company’s outstanding debts from unsecured creditors of Hyflux, as well as the debts of three Hyflux subsidiaries, namely Hyflux Hydrochem, Hyflux Membrane Manufacturing and Hyflux Engineering.

Aqua Munda principal activities reportedly include water treatment, waste treatment and oilfield chemicals. Its authorised representative is Singapore citizen Bambang Sugeng Bin Kajairi, according to a Bloomberg report.

In a regulatory filing on Tuesday, Hyflux reported that Aqua Munda estimates that the debts will total to some $1.8 billion, including contingent liabilities of $750 million.

An invitation memorandum will be issued by Aqua Munda by Dec 27, detailing the terms and conditions of the offer and respective settlements.

Eligible creditors will then be able to tender for the investor to purchase their debts anytime between 9am on Dec 30 and 5pm on Jan 10 next year. Aqua Munda will inform the creditors who submitted offers of the results and applicable proration date within 45 days from Jan 10.

“The investor shall, at its sole and absolute discretion, determine which of the tendered offers to accept and shall not be bound to give any grounds for the acceptance or rejection of any tendered offer,” says Aqua Munda in its letter of invitation.

“For the avoidance of doubt, the investor retains the right in any event to choose not to accept any or all of the offers tendered by the eligible creditors,” it adds.

Aqua Munda's offer comes just weeks after Hyflux entered into a restructuring deal with Middle Eastern utility Utico FZC.

See: Hyflux finally signs $400 mil rescue deal with Utico

Hyflux's founder Olivia Lum was once the poster child for Singapore entrepreneurship. However, the company's debt ballooned after expanding into the power-supply business, forcing it to the verge of bankruptcy.

A Singapore court in November approved Hyflux’s request seeking an extension of its debt moratorium by two months until Jan 31, with the next hearing scheduled for Jan 29.