Business

Hyflux informs creditors to file proofs setting out their claims

Troubled water treatment firm Hyflux has informed its creditors to file proofs setting out their claims for the purpose of scheme meetings to vote on a rescue deal with Middle Eastern utility Utico.

Parties that have claims against Hyflux, Hyflux Engineering, Hyflux Membrane Manufacturing and Hydrochem must file them by 5pm on Feb 5, the company said yesterday.

The proofs will form a basis for the creditors - which include bank lenders and trade creditors - to vote on the scheme proposals and to receive payments.

Holders of the company's notes, perpetual securities and preference shares (PnP) are not required to file any proof. This is because the notes and PnP holdings are recorded in the Central Depository and Hyflux will seek High Court leave to file a proof on the holders' behalf.

All creditors, including the PnP investors and noteholders, will get to approve or reject Utico's proposed rescue deal at the upcoming scheme meetings in March.

All this is taking place in the Hyflux saga even as Aqua Munda entered the picture last month to invite Hyflux noteholders and unsecured creditors to offer their debts for purchase at a minimum discount of 85 per cent.

The invitation from the Singapore-registered company expires on Jan 23.

Debt-laden Hyflux owes $900 million in PnP principal value to about 34,000 retail investors.

Also outstanding are the company's $100 million, 4.25 per cent notes due in 2018; the $65 million, 4.6 per cent notes due last year; and the $100 million, 4.2 per cent notes due last year. - THE STRAITS TIMES

BUSINESS & FINANCE