Hyflux’s Restructuring: Investors Are on the Edge of Their Seats
The Big Promise, The Tiny Immediate Reality
Fans of Hyflux are gearing up for Friday’s second town‑hall, hoping for the awaited blueprint that will keep the company afloat. But the reality? The planners are still polishing their strategy while chatting with senior creditors, so no final plan will appear just yet.
What to Expect for the Perpetual and Preference Shareholders
- More Updates, No New Plan – The shareholders will hear an honest status report about where we stand.
- Restructuring Timeline – A fresh timetable will be unveiled during the meeting.
Why the Delay? Courts, Creditors, & a Tight Deadline
Hyflux’s current legal safety net, the court‑sanctioned debt moratorium, wraps up on April 30. The company aims to seal a deal with creditors before that deadline via a court‑approved scheme of arrangement.
Call to the CEO: “Add Some Skin to the Game”
Securities Investors Association (Singapore), led by David Gerald, fired a quick reminder to Hyflux’s front‑woman Olivia Lum. He warned that investors yearn to see the majority shareholder’s commitment—ideally a mix of “cash & effort” that proves she’s riding the same ride.
Check the Numbers
Last month, a consortium consisting of Salim Group and Medco Group offered Hyflux a hefty US$560 million for a 60% slice once debts are cleared. Gerald stressed that investors expect the company to do the homework to secure the best possible deal.
When Can We See Recovery?
On November 23, Hyflux announced it might take up to two months to canvass all parties before it can present a workable plan to creditors. That paused the release of a plan early on, given that some creditors and medium‑term bondholders flatly rejected a preliminary proposal from EY, the company’s financial adviser.
Why the Pushback?
The critics pointed out that the proposal would hand the current management a 3% slice of the enlarged share capital—about US$20 million. That would reward a team that has steered Hyflux through rough waters since its downturn in 2009.
In Short: A Long Wait, A Hopeful Future
Investors can expect a clarified timeline, a shout‑out for transparency, and the ongoing dialogue that is still carving the path toward a potentially viable solution. No stone is left unturned, and every stakeholder hope will be weighed.
