Hyflux sues SM Investments over repudiation of rescue deal, claims S$38.9m deposit

DEBT-RIDDEN Hyflux has filed a lawsuit against its former suitor SM Investments (SMI) in the Singapore High Court for the repudiation of the rescue deal and is claiming the S$38.9 million deposit.

Hyflux has fired the first salvo in its dispute with SMI, which the water treatment company said has denied repudiating the restructuring agreement struck in October 2018. SMI was supposed to be the white knight for Hyflux.

The company, in a regulatory filing on Monday, said it had filed a writ of summons in the Singapore High Court to commence an action against SMI for repudiation of the agreement and to claim the S$38.9 million deposit placed into escrow shortly after the execution of the restructuring agreement.

Hyflux will provide updates as and when there are any further material developments concerning this matter. SMI had earlier this month commented that it was "surprised" by Hyflux's "purported termination" of the rescue deal, and will be taking legal advice in relation to Hyflux's action.

Hyflux has also announced the appointment of nTan Corporate Advisory as an additional adviser in the company's ongoing court-supervised reorganisation process.