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Hyflux applies to court for 3-month debt stay extension

DISTRESSED water treatment firm Hyflux has applied to the Singapore High Court for a three-month extension of its debt moratorium and to hold scheme meetings, the company announced in a bourse filing on Wednesday.

The applications will be heard on Jan 29.  

The update comes as white knight Utico is set to convene a townhall next week to address concerns brought up by Hyflux's medium-term noteholders and Perpetual securities and Preference (PnP) investors. 

The townhall will most likely be held on Jan 20, and will be arranged by the Securities Investors Association (Singapore) or Sias, Utico said in a statement to The Business Times on Tuesday.

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On Monday, Sias wrote to Hyflux about the "pressing concerns" of the PnP informal steering committee. A number of PnP investors holding "substantial debt" plan to vote against the Utico rescue deal at the scheme meeting in March.

For Hyflux to get its restructuring plans approved by creditors, the scheme of arrangement must be passed by each class of debt holders by both 75 per cent of the votes cast and more than 50 per cent in the number of people voting.