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Hyflux receives grant of extension for reporting Q2 and Q3 financials

SINGAPORE Exchange (SGX) has granted Hyflux extensions for reporting its financials, the water treatment firm that is going through a reorganisation said on Sunday in a Singapore Exchange filing.

It will get a six-month extension for announcing the unaudited financial statements for the second quarter ended June 30, which was originally supposed to be announced by Aug 14 this year. It will also have three more months to announce its third quarter financials, which were meant to be released no later than Nov 14. 

Hyflux said that SGX granted the extensions on July 6 subject to the company announcing the extensions granted, why they were sought and the conditions the extensions are subject to, and submitting a written confirmation that the extensions do not contravene any laws and regulations governing the company and the articles of association of the company.

Hyflux said that the company has faces a standstill on the payment of all pre-May 22, 2018 debts since its application on that date for a six-month moratorium for itself and its units, and is facing stringent controls on the group's cash, such as only paying critical expenses relevant to the reorganisation.

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It said that since it is negotiating terms of its reorganisation under the court-supervised process and the six-month moratorium, releasing its financial statements at this point before in-principle agreement of any terms of agreement that could arise, or before there is clarity on any financing proposals to be put forth, could result in inaccurate and incomplete reflection of financial information.

The length of these extensions is linked to the moratorium, it added, and the discussions about the reorganisation will take at least as long as the moratorium is granted.  

"It will only be meaningful for the company to start to prepare the relevant financial statements only when it has certainty regarding the
terms of the reorganisation and any financing proposals, which is expected to take additional time," it said.