June 19, 2018 / 9:41 AM / a month ago

Singapore water treatment firm Hyflux gets 6-month reprieve from creditors

SINGAPORE, June 19 (Reuters) - A Singapore court granted Singapore water treatment firm Hyflux Ltd a six-month reprieve from creditors, the company’s lawyer said on Tuesday, giving it breathing room to restructure its liabilities.

Hyflux, which is also involved power generation, has said sustained weakness in electricity prices in the city-state had increased strain on its finances and caused short-term liquidity restrictions.

It applied to the country’s high court in May to begin a reorganisation of its business. Trading in the company’s shares have been suspended for the past month.

“The court granted a six month moratorium in favour of Hyflux, which means no claims or enforcement actions can be brought against Hyflux in this six month period while it restructures its debt,” the lawyer, Manoj Pillay Sandrasegara from Wong Partnership, said in an email.

He added the company was seeking rescue financing of up to S$200 million ($147.16 million) and was in talks with several parties.

The company’s total liabilities stood at S$2.6 billion at the end of March. Last week, the company said it received a notice of default after it did not make the coupon payment on its S$500 million perpetual securities.

Shares of the company, which went public in 2001, last traded at S$0.21 versus a peak of S$2.876 in 2010.

The company was founded in 1989 by its CEO Olivia Lum. It has built two of Singapore’s desalination plants that can meet up to 25 percent of the city-state’s water needs. ($1 = 1.3591 Singapore dollars) (Reporting by Fathin Ungku and Aradhana Aravindan; Editing by Muralikumar Anantharaman)

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