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Hyflux said to mull seeking court protection for creditor talks
[SINGAPORE] Hyflux, the Singapore water treatment firm, is considering seeking a form of court protection to facilitate negotiations with creditors, people with knowledge of the matter said.
The company is considering asking the Singapore courts for a 30-day moratorium preventing creditors from taking certain actions that could hurt its financial position, according to one of the people.
The move would give Hyflux space to work out an arrangement with the creditors, the person said, asking not to be identified because the information is private. It may file an application as soon as Tuesday, the person said.
Hyflux has been working with an adviser to explore options for managing its debt load, the people said. Hyflux securities were halted from trading in Singapore on Monday, pending the release of an announcement. The situation is fluid, and Hyflux could decide to pursue other options, the people said.
An investor-relations official at Hyflux declined to comment by phone.
Hyflux said earlier this month it's in talks with potential investors to inject funds. Its net loss widened to S$22.2 million in the three months ended March 31, from a restated S$64,000 a year earlier.
The company has been in talks to sell a stake in its single largest asset, the Tuaspring project, which combines Southeast Asia's largest desalination plant with a gas turbine power plant. It's also been negotiating a potential divestment of the Tianjin Dagang desalination plant.