Hyflux's unsecured creditors likely to receive 'small dividend', liquidators say

THE liquidators for water-treatment company Hyflux said on Thursday (Nov 18) that unsecured creditors, including medium-term noteholders, are likely to receive a "small dividend" following the sale of assets.

However, Hyflux shareholders and holders of the perpetual securities and preference shares (P&Ps) are unlikely to recover any part of their investments. "The P&P claims are subordinated to the claims of ordinary unsecured creditors and are unlikely to be eligible for a dividend," the liquidators said.

They said they have received total proofs of debt amounting to around S$1.5 billion, but the realisations from the asset sales are unlikely to exceed S$100 million.

The size and timing of any dividend to unsecured creditors will be assessed after the sale of all assets is completed. However, the liquidators said that it is impossible to know when this will be completed.

"It is too early to provide any estimates for the completion of the liquidation," it added.

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