Singapore-based water and power company Hyflux is in discussion with the Middle East?s Utico FZC about securing US$294mn of funds, after receiving a non-binding letter of intent in relation to the ongoing court-supervised reorganization process
This marks the latest development in Hyflux?s high-profile debt restructuring, started last May and has since been marked by unexpected twists and turns such as the termination of a major rescue deal in April 2019, according to the company.
Hyflux?s attempt at restructuring US$2bn of unsecured claims, one of the largest such cases in Singapore, was thrown into confusion on 4 April 2019, when it scrapped a pact with SM Investments, a press release stated.
Hyflux?s legal and financial advisors are in discussions with Utico FZC?s legal and financial advisors on the terms of investment, to be set out in a binding term sheet for execution.
In this regard, Utico FZC has informed Hyflux that it is aware of the urgency of the restructuring and that it intends to keep Hyflux?s crucial entities intact and operational; retain the group?s current management; and reach an amicable deal with creditors and investors.
Singapore-based company is also in concurrent discussions with several other parties interested in investing in the business of the group.
