Despite drowning in a S$3 billion debt, Singapore’s Hyflux just cancelled its second rescue deal. The Singapore water and energy company said it “ceased” the deal and it is now looking for other investors:
“The S$400 million rescue deal with Utico has ceased with the lapsing of the long-stop date earlier this week.”
The Singapore courts protected Hyflux from its creditors by offering two debt extensions, since May 2018 to Feb 28, and again to Apr 30 this year. This ample allowance siding with Hyflux was on the basis that Hyflux had secured cash injection from investors, Salim-Medco group, and later Utico.
The company CEO, Oliver Lum, is a friend of the Prime Minister’s wife, Ho Ching.
On May 19, 2019, the Singapore government’s Public Utility Board (PUB) bailed out Hyflux partially, by taking over the loss-making desalination plant Tuaspring. This is done to stop Hyflux’s debt from rolling further, but the Singapore government claimed the takeover was to “secure Singapore’s water security”.
Hyflux will be declared bankrupt and dismantled to pay creditors, unless the crony Singapore dictatorship government and judiciary intervene to help Oliver Lum.
Retail investors is likely to have their capital completely wiped out, as secured creditors like Maybank, which have RM1.95 billion of loan to Hyflux since 2013.