Hyflux Still In Limbo- Hyflux Asserted That Utico Gave Inaccurate Announcements

The scheme meeting with creditors will be held on 22 April 2020. However, we are already seeing the senior management of Hyflux once again crossing sword with their own White Knight Utico. Yes, I used the word “again” because Hyflux also went into disagreement previously with their previous White Knight Salim Medco Group. Apparently, the current cracks in relationship came from the amount of legal and advisory fees pot of S$50Mil being committed. Utico is only willing to put up S$30Mil as the professional advisors of Hyflux and SIAS failed to show support for the scheme by 29 Jan 2020 court hearing. Original intention was S$50Mil for the professional services pot if show of support settled by end of Jan 2020 but unfortunately it was not to be due to various factors such as the emergence of another player, Aqua Munda, which offers to buy creditors’ debts at a minimum discount of 85%.     

Why so drama?
The senior management of Hyflux released a statement that asserts Utico’s press announcements contains “material inaccuracies” which appear to be designed to further its negotiation with the company and dissuade competing third party investors from investing into Hyflux. Personally, I think it is strange that Hyflux management team is still thinking of getting other prospective investors to come in at this juncture. One will probably be wondering whether it is Utico instead of Hyflux which is in need of a financial bailout.

Parting thoughts- slow and painful progress (if we can call it progress at all)
My thoughts are that the senior management of Hyflux are behaving as if they got many choices and can afford to keep shopping around. Hence one cannot blame Utico for bypassing Hyflux and conducting their restructuring negotiation through public announcements. Why do I get the feel that Hyflux management team will be more than happy if the Utico deal failed? In the meantime, the never ending Hyflux soap opera continues…..


P.S: Please see my previous other postings here on the Hyflux saga:
1. Hyflux Utico Rescue Deal May End In Failure- Unsecured Creditors and Perpetual Securities Holders Still Unhappy

2. The Never Ending Hyflux Saga- Utico Deal May End In Shambles