Debt-ridden local water treatment firm and genco Hyflux is commencing civil proceedings against Indonesian consortium Salim-Medco Group over a “repudiation of the restructuring agreement” inked last Oct.
Nikkei Asian Review reported on Mon (15 Apr) that according to Hyflux, it has filed a writ of summons to the High Court regarding the matter.
Salim declined to make any comments in response to Hyflux’s initiation of civil proceedings against the consortium when contacted by Nikkei the same day.
While the firm is seeking to obtain a S$38.9mil deposit that was placed into escrow after the restructuring agreement was executed, Hyflux did not indicate how it would utilise the deposit should it succeed in its civil suit, Nikkei observed.
Despite its looming debt moratorium at the end of this month, Hyflux has declined to make any speculations on its new restructuring plan, following its termination of a S$380mil bailout deal with the Salim-Medco consortium – via its Singapore arm SM Investments – two weeks ago.
Speaking at a case management conference at the High Court on 11 Apr, Hyflux’s lawyer Manoj Sandrasegara of WongPartnership told Justice Aedit Abdullah and lawyers representing Hyflux’s creditors that it is “too premature” to discuss a new rescue plan, The Straits Times reported.
Mr Manoj added that the firm has yet to settle on a further extension of the court-ordered debt moratorium, which protects Hyflux Group from its creditors.
“If we do intend to apply for the moratorium to be extended, we will need about 10 days to two weeks to talk to the creditors about our next steps,” he said.
Justice Aedit, in asking whether Hyflux will seek an alternative to liquidation, cited a letter the court had received from retail investor Violet Seow, which read that she has “no confidence in the restructuring attempt”, and that she is opposed to the further extension of the debt moratorium.
Mr Manoj replied that Hyflux will address the issues raised by investors such as Ms Seow, particularly those from senior unsecured groups, adding that “all options are on the table”, according to CNA.