Hyflux files for liquidation after failed investor talks

HYFLUX’s judicial managers have filed an application with the court to wind up the crisis-hit company after failed negotiations with an investor. 

In a bourse filing on Friday night, the judicial managers from Borrelli Walsh said a restructuring is not possible and that the remaining value of Hyflux is “best realised in a liquidation”. 

They noted that judicial management is no longer needed, and that its objectives are no longer capable of achievement, following the conclusion of the investor process. 

The judicial managers had previously been granted an extension for their terms of office until July 14 to determine whether a potential restructuring of the group is possible.

They had received seven bids in respect of stage two of the investor process. These seven bids include one bid for an investment in the entire group and six bids for specific assets of the group. The six bids involving the purchase of Hyflux’s individual assets in the group can be facilitated through a winding-up of the group.

When Hyflux was placed under judicial management last November, there were only three offers on the table. These were from US-based Strategic Growth Investments (SGI), Middle Eastern utility firm Utico, and Pison.

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By January, the judicial managers were in talks with 17 potential investors, which had included SGI, Spain-based FCC Aqualia and Utico.

Trading in Hyflux securities has been suspended since May 2018.