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SIAS says Utico made last-minute changes to Hyflux rescue package

SECURITIES Investors Association of Singapore (SIAS) founder and CEO David Gerald said SIAS is "seriously concerned that there is no finality yet on Utico’s offer" for Hyflux.

In a letter to media, he highlighted that while Hyflux and the various creditor groups have been working within the timelines set by the Singapore High Court to finalise a deal, "changes have been repeatedly introduced at the eleventh hour by the investor".

"SIAS hopes that such strategies designed to achieve advantages for one party only would not be allowed to scuttle an outcome which could potentially benefit a great number of stakeholders, including the holders of the perpetual securities and preference shares," said Mr Gerald.

SIAS "urged all parties, including Utico, to continue negotiations with a view to achieve a commercially acceptable outcome for all stakeholders involved, including in particular, the holders of the perpetual securities and preference shares".

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The High Court on Sept 30 granted Hyflux a two-month extension on its debt moratorium until Dec 2.

Hyflux and Utico had held talks ahead of a Nov 1 deadline for a rescue plan, with Hyflux's lawyer stating then that it was in talks with two other parties about potential investments in the water treatment firm.