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New investor offers to buy out some of Hyflux's creditors

A NEW investor has come calling on beleaguered water treatment company Hyflux, making an offer disclosed on Tuesday to buy out some of its creditors' debts.

The fresh face, a company named Aqua Munda, has made its offer to holders of Hyflux's 4.25 per cent notes due in 2018 and its 4.6 per cent notes and 4.2 per cent notes due in 2019, as well as to the unsecured creditors of Hyflux and three of the company's subsidiaries.

According to the invitation notice sent to Hyflux, Aqua Munda has estimated that these debts together come up to about S$1.8 billion, including contingent liabilities.

Eligible creditors can tender for the investor to buy over the debts between Dec 30, 2019 and Jan 10, 2020, with a more detailed memorandum to set out the terms and conditions by Dec 27.

"For the avoidance of doubt, the investor retains the right in any event to choose not to accept any or all of the offers tendered by the eligible creditors," Aqua Munda added in its letter.

Hyflux recently had its debt moratorium extended for another two months, until late-January next year.

Referring to the latest offer, it said in a bourse filing on Tuesday night that it "will make the appropriate announcements as and when there are any further material developments on this matter".