Hyflux founder Olivia Lum did not attend yesterday's hearing, but wrote in a June 14 affidavit that if the firm can get a $200 million cash injection, it would help fund construction at Hyflux's ongoing TuasOne and Qurayyat projects. It would also assist it to secure new projects. The firm is in preliminary talks with 27 potential financiers. ST FILE PHOTO
The High Court has granted Hyflux a six-month lifeline to stave off its creditors.
Now the struggling water project firm must find a buyer for its stake in the giant Tuaspring asset and seek offers from rescue financiers.
Hyflux is seeking to raise about $200 million in rescue financing after the court yesterday granted it a six-month reprieve from creditors to work out a survival plan and reorganise its debts.
Without the debt moratorium, Hyflux would "run out of cash in the next four to five weeks", WongPartnership partner Manoj Sandrasegara told the court.
Hyflux's bank debt is $1.84 billion. That excludes $265 million in outstanding medium-term notes, $400 million in outstanding retail perpetual preference shares and $500 million in retail perpetual securities.
Hyflux and its units under the moratorium had a cash balance of just $18.6 million as of June 4. That represents a net cash outflow of $300,000 since May 18.
Hyflux founder Olivia Lum did not attend yesterday's hearing, but wrote in a June 14 affidavit that if the firm can get a $200 million cash injection, it would help fund construction at Hyflux's ongoing TuasOne and Qurayyat projects. It would also assist it to secure new projects.
Hyflux is in preliminary talks with 27 potential financiers. If these express concrete interest after having seen limited data about Hyflux, they will proceed to more advanced talks, said Ms Lum.
Hyflux estimates that it will cost $132 million to complete the TuasOne waste-to-energy plant in May next year. It will then enjoy a net cash inflow of $291 million.
The Qurayyat desalination project in Oman is expected to cost US$28 million (S$38 million) to complete. Hyflux will get a net cash inflow of US$5.6 million once commercial operations commence in September.
The six-month lifeline gives Hyflux's interested rescuers the time to "get their act together" and arrange a $200 million syndicated loan, Mr Sandrasegara said. Such a loan may be disbursed over time as milestones are reached, he added.
More at https://www.straitstimes.com/business/companies-markets/court-gives-hyflux-6-month-respite-from-creditors