Hyflux’s winding up application to be heard on July 12

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SINGAPORE – The winding up application for beleaguered water company Hyflux and its unit Hydrochem will be heard on July 12.

Judicial managers Borrelli Walsh (BW) made the announcement on Thursday (June 24) following a virtual townhall meeting for all Hyflux shareholders last Friday.

The judicial managers said that perpetual and preference share (PnP) holders and noteholders were not consulted or asked to vote on the filing of the winding up application because they lacked a proposal that could be put before creditors for a vote.

Such a proposal requires a credible bid for an investment in the group. BW said on June 4 that negotiations with one investor for an investment in the entire Hyflux group were unsuccessful.

Investors in the once high-flying firm include about 34,000 individuals, who put money in products including perpetual notes and preference shares. They are owed about $900 million in total.

However, it was previously reported that asset sales in a liquidation process at Hyflux would likely bring in less than $200 million, according to sources.

Meanwhile, white-knight suitor Utico remained unable to meet the minimum conditions required to consider an offer, just as it was before their previous discussions were terminated.

Utico chief executive Richard Menezes had attempted to offer the crisis-hit company a rescue deal just two days after the winding-up application was filed but no viable proposal could be tabled for creditors to consider.

The judicial managers said they had no choice but to apply for the winding up of Hyflux and Hydrochem.

They noted that they have the necessary information to investigate the assets, business affairs and dealings of Hyflux. Areas that may warrant investigation have also been identified.

But an estimated timeline for completing of the liquidation cannot be given, as Hyflux consists of more than 80 entities across multiple jurisdictions, said the judicial managers. They also can’t provide estimated returns or recoveries of made.

“This is because there is still significant work to be done and to be resolved in respect of the Hyflux group’s asset sales,” said the judicial managers, adding that they and the liquidators will try to complete the sale of assets as quickly as possible.

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