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Hyflux receives notice of default from perps trustee

HYFLUX said on Monday that it has been notified by the trustee for its S$500 million 6 per cent perpetual securities that its failure to pay last month's coupon has resulted in an event of default.

This tranche of perps has a first call date on May 27, 2020. A default has occurred since Hyflux did not pay perp holders a coupon last month, choosing instead to start a debt restructuring process.

Since a default has occurred, the trustee can institute proceedings for Hyflux to be wound up if it gets the mandate of perp holders to do so. The trustee has informed Hyflux that it reserves this right and the rights of perp holders in this regard.

The trustee also said it has taken note that in the view of Hyflux, the company has been protected by a 30-day moratorium on creditors’ claims since May 22.  

Hyflux said it will continue to engage with the perpetual trustee. 

Hyflux shares remain suspended from trading.

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