Hyflux disputes several statements by suitor Utico

DISTRESSED water-treatment company Hyflux has disputed several statements made by its Emirati suitor Utico in a letter published over the weekend, including that various groups of creditors are working with Hyflux and Utico in tandem, and that Utico is the only potential investor with a firm binding offer.

Mainboard-listed Hyflux, in a regulatory statement to the Singapore Exchange on Tuesday, publicly disagreed with Utico's version of events related to its restructuring efforts.

Hyflux denied being aware of Utico having discussions with the unsecured working group (UWG) of banking creditors, and also questioned the veracity of Utico's statement that there was a firm binding offer from the Emirati suitor.

Also, it is not true that the "UWG would like to ensure parallel engagement with the perpetual securities and preference shares (PnP) investors and an offer prior to UWG acceptance", said Hyflux. It said it has not made such a statement in the affidavits filed for the judicial management hearing.

The court will be hearing the UWG's application to place Hyflux under judicial management on Wednesday.

Hyflux rejected Utico's "unwarranted insinuation" that the company has said that dealing with the PnP holders and Securities Investors Association (Singapore) is a "waste of time".

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"We have stated time and again that any restructuring deal must include the PnP holders who are, in our view, an essential group of creditors whose concerns must be taken into account and addressed by any potential investor," wrote Hyflux.