Hyflux fields at least seven non-binding offers as cash runs out

The Singaporean water-treatment company currently has at least seven non-binding offers from potential investors.

SINGAPORE: Hyflux Ltd., which was put under judicial management in November last year, will be fielding several possible bids in the months ahead as it tries to avoid running out of money.

The Singaporean water-treatment company currently has at least seven non-binding offers from potential investors, according to two people familiar with the matter. It needs to move fast: the firm had S$18.4 million ($13.8 million) of cash as of Jan. 31, enough to survive five months from that date, the people said, asking not to be identified because the matter is private.

The suitors have shown interest in Hyflux as a whole or for some of its assets, but the bids have varying degrees of complexity and many need additional clarification, the people said.

Patrick Bance, a Singapore-based director at Hyflux’s judicial manager Borrelli Walsh, declined to comment.

Once a corporate highflyer, Hyflux is Singapore’s most high-profile debt-restructuring case that has dragged on since a court-supervised process began in May 2018. Rapidly declining liquidity is adding to the woes: its cash and equivalents halved for two straight years through 2020; read for more details.

Singapore Court Orders Judicial Control of Crisis-Hit Hyflux

Borrelli Walsh isn’t yet able to determine whether the company will be restructured in entirety or its assets will be sold piecemeal, according to the people.

The judicial manager seeks binding offers from suitors by March 31 and targets finalizing the term sheets with shortlisted investors by April 15, the people said.

In January this year, Hyflux said 17 potential investors were conducting due diligence for submitting non-binding offers and the judicial manager would invite shortlisted suitors to participate in second stage of bidding process on or about Feb. 15. - Bloomberg

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3

Next In Business News

Ringgit opens lower as US Teasury yields ease
Quick take: UCrest jumps 24%, most active on Bursa
Foreign investors turn net sellers with RM235.26mil net outflow
Rewarding entrepreneurs who rise to the challenge
A revolution in cleaning
KLCI opens weaker on resurgence of Covid infections
Quick take: Magna Prima falls after auditors' highlight 'material uncertainty'
Driven to excel
Trading ideas: Central Global, Dynaciate Group, Transocean Holdings
MIDF cuts earnings outlook on Capitaland Malaysia Mall Trust

Stories You'll Enjoy