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Aqua Munda commits S$208m to Hyflux debt buyout, extends deadline

AQUA Munda is committing S$208 million to fund a debt buyout offer for Hyflux noteholders and unsecured creditors, the investor said in a press statement on Saturday.

It is also extending the expiration deadline for the offer to 5pm on Jan 31, and the acceptance deadline to Apr 3.

Aqua Munda said the S$208 million may be used to fund Hyflux's working capital requirements in addition to the debt buyout, if agreed. The total principal amount of debt eligible for the buyout is about S$1.8 billion, or nearly two-thirds of Hyflux's total S$2.8 billion debt.

The offer, which began on Dec 30, invites holders of Hyflux's 4.25 per cent notes due 2018 and its 4.6 per cent and 4.2 per cent notes due 2019 to submit bids for some or all of their debt, with a minimum discount of 85 per cent on the offered debt.

Holders of other senior unsecured debts, contingent debts, and trade and other debts of Hyflux and its subsidiaries Hydrochem, Hyflux Membrane Manufacturing and Hyflux Engineering are also eligible to apply.

Hyflux acknowledged the Aqua Munda press statement on the same day it was released, and said it would make appropriate announcements as and when there are further material developments on the matter.