If Hyflux has found a white knight, why are stakeholders still in distress?
CORPORATE restructurings can be dirty and ugly. It usually ends with creditors fighting like cats for what amounts to no more than scraps compared to what they have invested.
Information is shared asymmetrically down the ladder of lenders. Banks get a first look at any rescue plan. Equity and quasi debt holders - which describe most of Hyflux's retail investors - line up at the end of the queue and often are the last to know if they will be paid.
Questions of management accountability, trust and fairness were given short shrift as Hyflux found respite under bankruptcy protection in May last year.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Brokers’ take: Analysts raise Singtel target on upbeat dividend, growth outlook
Six other times turbulence led to serious injury on SIA flights in last 20 years
Tesla slashes Model Y production in Shanghai, data shows
Nvidia cuts China prices in Huawei chip fight: sources
Segantii redemption requests hit US$1 billion before move to shut
Tata Power seeks up to US$1 billion loan for clean energy projects