Singapore utility Hyflux’s suitor Utico says willing to walk away from rescue deal

Source: Hyflux headquarters in Singapore. (Photo by Mayuko Tani, Nikkei Asian Review)

A Middle Eastern suitor for Hyflux Ltd. said it is willing to walk away from a deal with the embattled water treatment company, after a little-known firm made an offer for the utility’s debt.

The development is an added complication in Singapore’s highest-profile restructuring case, which has left some 34,000 retail investors in the lurch, with few signs of a resolution emerging after more than 18 months. Hyflux is separately asking for a three-month extension of its debt moratorium.

The United Arab Emirates-based utility, Utico FZC, will hold a town-hall meeting for holders of Hyflux’s perpetual securities and preference shares, as well as medium-term notes, on Jan. 20 in Singapore. It comes just days before the expiry of an offer by Aqua Munda Pte to buy the Singaporean company’s debt.

“We are willing to walk away” if note holders “don’t want us,” Richard Menezes, chief executive officer of Utico, said in a press release. “However, I believe that taking part in the town hall will present the correct forum to know facts and take a decision.”

Utico entered a restructuring deal with Hyflux in November. Weeks later, Aqua Munda emerged from nowhere with an offer to purchase Hyflux’s debt at a minimum discount of 85%.

Bloomberg

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.