April 16, 2024


Savvy business masters

Hyflux applies to postpone scheme meetings, extend moratorium due to COVID-19 safe distancing rules

SINGAPORE: Embattled Hyflux said on Wednesday (Apr 8) that it has applied to the Singapore High Court to postpone its scheme meetings scheduled this month, due to the heightened safe distancing measures put in place by local authorities to combat COVID-19.

It is also seeking a three-month extension of its debt moratorium, which currently grants it reprieve from creditors until Apr 30.

The debt-stricken water treatment firm, which is the midst of a court-supervised debt restructuring, filed the “urgent applications” to the local courts on Tuesday, it said in a bourse filing.

Hyflux said current “circuit breaker” measures – which require all non-essential services and schools to be closed until May 4 – have made it “impossible … to physically convene the scheme meetings on Apr 22 and 23 as originally intended, and, as required under the present statutory regime”.

READ: COVID-19: Singapore makes ‘decisive move’ to close most workplaces and impose full home-based learning for schools, says PM Lee

“To the extent that the Singapore Government legislates alternative arrangements for the convening of meetings, the company will require additional time to prepare and organise the scheme meetings,” it said.

Accordingly, it has applied to “vary the present timelines to convene the scheme meetings and to extend the existing moratorium until Jul 30 or until further order”.

Hyflux is in the final legs of concluding a S$400 million restructuring deal with United Arab Emirates utility firm Utico. 

According to its current timeline, the scheme meetings are supposed to be held on Apr 22 and 23. If the scheme goes through with a majority vote from creditors, the Court will sanction the scheme on Apr 30.

The long stop date, or expiry date of the rescue plan is on May 26.

Hyflux said in its bourse filing that it will provide an update on the outcome of its applications and any further material developments “as soon as it is able to do so”.

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