Hyflux rescue deal hits a snag as Utico revokes cash offer

THE rescue deal for Hyflux has hit another snag, with potential investor Utico now demanding that all of Hyflux's creditors accept shares of Utico and Hyflux as payment, instead of cash.

In a letter to Hyflux and its stakeholders on Tuesday, Richard Menezes, chief executive of Emirati utilities group Utico, said that he wants the terms of the rescue deal changed, citing a lack of support from creditor groups, despite an agreement being signed on Nov 26 last year.

Mr Menezes wrote: "We had signed the restructuring agreement hoping to consummate it in 2019, first on Aug 26 and finally on Nov 26. Unfortunately we could not get the Hyflux board to support initially, and finally UWG (an unsecured working group of banks) and advisers did not support the deal. We also did not have explicit support from P&P (perpetual and preference shareholders') advocate Sias (Securities Investors Association Singapore) till date, even though we found the townhall of Jan 20 well attended."