Hyflux's winding up application to be heard on July 12

HYFLUX'S judicial managers said on Thursday that the winding up application of the beleaguered water treatment company and its unit Hydrochem will be heard on July 12.

Judicial managers Borrelli Walsh (BW) were addressing frequently asked questions in a bourse filing following its virtual townhall meeting for all Hyflux shareholders held on June 18, where updates regarding the judicial management and winding up application were provided.

The judicial managers said that perpetual and preference share (PnP) holders and noteholders were not consulted or asked to vote on the filing of the winding up application because they lacked a proposal that could be put before the creditors for a vote.

Such a proposal requires a credible bid for an investment in the group. BW had on June 4 said that negotiations with one investor for an investment in the entire Hyflux Group were unsuccessful.

Meanwhile, white-knight suitor Utico remained unable to meet the minimum conditions required to consider an offer, just as it was before their previous discussions were terminated. Utico's chief executive Richard Menezes had attempted to offer the crisis-hit company a rescue deal just two days after the winding-up application was filed.

Given that it was not possible to achieve one or more of the judicial managers' objectives under the Insolvency, Restructuring and Dissolution Act (IRDA), there was no statement of proposal to be tabled at a meeting with creditors for voting, said the judicial managers. They had therefore proceeded to apply for the winding up for Hyflux and Hydrochem.

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In response to queries on investigations that will be undertaken, the judicial managers said that they have gathered the necessary information to conduct thorough investigations into the assets, business affairs and dealings of Hyflux. Areas which may warrant investigations have also been identified.

However, it is currently not possible to provide an estimated timeline for the completion of the liquidation given that the group consists of more than 80 entities across multiple jurisdictions, said the judicial managers.

In addition, they are unable to provide estimated returns or recoveries of investments made at this juncture.

"This is because there is still significant work to be done and issues to be resolved in respect of the Hyflux Group's asset sales," said the judicial managers adding that they will, together with the appointed liquidators, endeavour to complete the sale of assets as quickly as possible.

Updates regarding the timing and amount of distributions will be provided as soon as practicable, they said.

Any distributions to the PnP holders and noteholders will be made in accordance with their respective priority in the capital structure and in accordance with the IRDA.

READ MORE:

• Hyflux may fetch under S$200m in liquidation: source
• Is white-knight offer Hyflux’s last, best hope?
• Hyflux’s liquidation a sad day for corporate Singapore