Hyflux says no definitive deal yet with potential white knight Utico

Singapore

HYFLUX has rebutted an assertion by potential white knight Utico that they had struck a rescue deal.

In a statement late on Wednesday, the embattled water firm clarified that a definitive agreement had not yet been entered into with Utico, pending resolution on "certain final outstanding issues" in the draft definitive agreements.

It was responding to a statement on Tuesday by Utico that the United Arab Emirates utility firm had "signed and released" a restructuring agreement with Hyflux.

"The company and Utico are, however, in highly advanced discussions and will continue to engage with each other with a view to resolving such final outstanding issues and finalising and entering into the definitive agreement as soon as possible," Hyflux noted in its statement issued just before midnight.

In its statement on Tuesday, Utico said the restructuring deal "finds a resolution" for creditors and PNP investors and development projects that have been "languishing since the moratorium" in May 2018.

It also added that "swift action" would be taken to bring all projects up to speed, as well as take on new projects, together with the support of Hyflux's board and management. Details of the agreement were not disclosed.

Hyflux said on Aug 16 that it would engage exclusively with Utico until Aug 26 as its negotiations were the most advanced among all potential investors.

Aug 26 was also the deadline for Hyflux to enter a definitive agreement for Utico's intended investment - a S$300 million equity injection and a S$100 shareholder loan for 88 per cent of the water firm.

Shares in Hyflux have been suspended from trading since May last year.