Saving Hyflux: stakeholders, patience is vital now
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WHEN any listed company, let alone one as prominent as water treatment specialists Hyflux, runs into financial problems and applies for court protection, it is only natural for stakeholders to worry about whether they will be able to recover their investments.
In Hyflux's case, apart from its shock announcement on May 22 of a 30-day moratorium on creditors' claims, the 50,000-plus retail investors, including those holding ordinary shares and perpetual securities (perps) have been hit by an announcement by the trustee for the company's perps that Hyflux's failure to pay a coupon due last month constitutes a default event.
This means the trustee can institute proceedings for Hyflux to be wound up if it gets the mandate of perp holders to do so.
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