Hyflux to meet bank lenders this week to discuss restructuring

HYFLUX said on Monday that it is meeting  its bank lenders this week to discuss its debt restructuring.

The water project developer filed for court protection against creditors' claims on May 22, a move that buys it time to address its cashflow problems. 

It now has to come up with a convincing business plan to satisfy its key lenders - and the Singapore High Court - that it deserves a six-month moratorium to revive its business and reorganise its debts.

Meanwhile, Hyflux is also continuing discussions with a number of its other key stakeholders, including counterparties to its ongoing projects and trade creditors, it said on Monday.

"The relevant stakeholders are being engaged... to ensure that ongoing projects are completed as scheduled so that the milestone payments are received," Hyflux said in a statement to the Singapore Exchange. The steps should improve the Hyflux's short-term liquidity constraints and other strains on its finances, it said.

Hyflux and its advisers have also been engaging in "preliminary discussions with interested financiers" regarding the provision of funding to the group, it added. The parties are in preliminary discussions to enter into non-disclosure agreements to further such discussions, Hyflux said.

Hyflux shares remain suspended from trading, as its financial position remains unclear pending the outcome of the court-supervised reorganisation process.