Hyflux timeline – from market listing to liquidation
HYFLUX was ordered by the court to be placed under judicial management in November 2020 and be wound up in July 2021, after the company failed to secure a white knight while it was under a debt moratorium for almost two years.
After the company’s venture into the energy business through the Tuaspring desalination plant, its financial difficulties started surfacing. The plant, with its power plant that was to supply electricity for the desalination process, chalked up losses amid low electricity prices and a challenging macro environment. This brought the company to its knees, and its founder Olivia Lum and independent directors were charged.
On Thursday (Aug 7) an ex-director of Hyflux pleaded guilty to a disclosure-related charge linked to Tuaspring – ahead of the trial of six other individuals, including Lum, set to take place this coming Monday.
Here is a timeline of the rise of Hyflux and its subsequent difficulties leading to the upcoming trial:
January 2001 – Hyflux raises net proceeds of S$6.8 million in an initial public offering.
June 2010 – PUB calls a tender for Singapore’s second and largest desalination plant to be built at Tuas.
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March 2011 – Hyflux wins the PUB tender. The stated project cost is S$890 million. It is Hyflux’s largest contract, and first foray into power.
February 2017 – Tuaspring fails to turn a profit. Hyflux says it will partially divest Tuaspring, subject to regulatory approvals.
May 2018 – Hyflux files for bankruptcy protection and gets an automatic 30-day moratorium. Trading in all its shares and securities is suspended.
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June 2018 – A Singapore High Court extends Hyflux’s debt moratorium by six months, or until Dec 18, 2018.
November 2018 – A Singapore High Court extends Hyflux’s debt moratorium by 4½ months to Apr 30, 2019.
May 2019 – Hyflux tells the Singapore Exchange that it could get a S$400 million life line from Utico for equity and working capital purposes, and possible urgent interim funding. A few days later, the High Court allowed Hyflux two additional months of reprieve from its creditors as the firm continued to work with several investors to nail down a new restructuring plan.
August 2019 – Utico warns Hyflux it would walk away from the rescue deal if the water treatment company did not commit to a restructuring deal by Aug 16.
May 2020 – Hyflux says its S$400 million rescue deal with potential investor Utico has “ceased” with the lapsing of the restructuring agreement’s long-stop date on May 26. But it continues to be in discussions with Utico and pursues other options, including those with other potential white knights, namely Aqua Munda, Longview and FCC Aqualia.
June 2020 – The Commercial Affairs Department of the Singapore Police Force, the Monetary Authority of Singapore and the Accounting and Corporate Regulatory Authority launch a joint investigation into Hyflux, and its current and former directors for suspected false and misleading statements and breaches of disclosure requirements.
July 2020 – Utico ups its offer to a minimum of S$485 million, comprising cash and stock, details of which were sent to Hyflux and all creditor parties. The same day, Hyflux receives an invitation memorandum from Pison Investments. Later that month, Justice Aedit Abdullah gives the go-ahead for an unsecured working group (UWG) of banks to be carved out of Hyflux’s debt moratorium.
August 2020 – Utico reportedly again extends the deadline of its proposed rescue deal for Hyflux to 5 pm on Aug 30.
September 2020 – Utico extends the deadline for Hyflux to accept its proposed rescue package to Oct 15, Hyflux said. A few days later, Pison Investments says it has received 158 tender application forms from noteholders and other eligible creditors, but that efforts to engage with the UWG of 7 banks have fallen through.
October 2020 – Hyflux says it has received a formal expression of interest from American fund manager Strategic Growth Investments (SGI) to invest at least S$205 million. Two days later, Justice Aedit agrees to grant an adjournment to the judicial management application, given new developments and SGI’s expression of interest.
November 2020 – Hyflux says it has received a term sheet for a negotiated transaction from SGI. On Nov 16, Hyflux is placed under judicial management after another failed attempt at an adjournment to the judicial management application.
November 2020 – Borrelli Walsh (BW) is appointed as judicial manager. It extends term on more than one occasion to consider options for Hyflux.
January 2021 – BW in talks with 17 potential investors.
May 2021 – BW says it has received seven bids.
June 2021 – BW says negotiations have fallen through, files a winding-up application. Two days after, Utico chief executive officer (CEO) makes offer.
November 2022 – Olivia Lum, Hyflux’s chief executive, is charged with disclosure-related offences. Former chief financial officer Cho Wee Peng and four independent directors are also charged.
August 2025 - Ex-independent director Rajsekar Kuppuswami Mitta on Aug 7 pleads guilty to being negligent in Hyflux’s failure to disclose to SGX relevant information related to the Tuaspring integrated water and power project.
Mitta is fined S$90,000 and barred from becoming a director in any company. He also cannot take part, directly or indirectly, in the management of any company for five years, effective Thursday.
His guilty plea comes ahead of the trial against six others, including Lum, scheduled for Aug 11.
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