Hyflux postpones townhall meeting over space constraints

Embattled water treatment firm Hyflux has cancelled the scheduled townhall meeting on its restructuring on Wednesday due to space constraints as a larger-than-expected turnout will be attending the meeting.

In an announcement posted on the Singapore Exchange late on Monday night, the firm said it will not be holding the scheduled meeting at the Hyflux Innovation Centre, located at 80 Bendemeer Road.

‘Due to the large number of holders of the securities who have indicated that they wish to attend, the company considers it necessary to arrange for a larger venue to conduct this town hall meeting and will therefore not be holding the town hall meeting on March 13, 2019,’ Hyflux said.

The firm did not provide a new date, time or venue on the rescheduled town hall meeting, only to say that it will announce the details ‘as soon as possible’.

Restructuring scheme

Days ago, Hyflux said it will tweak the restructuring scheme to allow retail perpetual and preference shareholders to benefit more when the firm recapitalizes.

This is after the holders, represented by the Securities Investors Association (Singapore), said that they are not agreeable to the recovery rate of 10.7% on their original investment that Hyflux needs them to accept in its restructuring scheme. The amended scheme plans to give minority stakeholders better recovery rates.

The firm announced in a regulatory filing last Friday it has received proof of claims from 73 parties, amounting to S$3.51 billion.

Of which, owners of Hyflux’s S$500 million 6% perpetual securities have filed claims of S$540.7 million, while owners of the group’s preference shares have filed claims worth S$429.3 million.

The firm said it took a S$916 million (US$676.76 million) impairment charge for the nine months ended September 30th, 2018, to adjust to the fall in carrying value of the Tuaspring water and power plant and other write-downs. The announcement was the first time the embattled firm had revealed any financial numbers since it applied for a moratorium in May to prevent it from being wound up.

Hyflux needs to keep things going as the firm has to get an agreement from the majority of its creditors and another court approval by mid-April on its restructuring plans before the lifeline from SM Investments’ S$530 million restructuring deal expires.