SINGAPORE — Hyflux is engaging with potential white knights overseas for a new restructuring deal worth S$400 million, said the embattled water treatment firm in a filing to the Singapore Exchange on Thursday (April 25).

According to Hyflux, it has received a non-binding letter of intent from one such party — a developer and owner of water and power utilities based in the Middle East with a “reputable track record”.

Hyflux said the possible injection of S$400 million will be used for equity and working capital purposes and possible urgent interim funding.

According to the SGX filing, a group of unsecured banks comprising Mizuho Bank, KfW IPEX-Bank GmbH, Bangkok Bank, BNP Paribas, CTBC Bank, The Korea Development Bank and the Korea Development Bank, Singapore Branch applied to the Singapore High Court on Wednesday for Hyflux and Hydrochem to be placed under judicial management and/or interim judicial management.

Hyflux will also have its application for an additional three-month reprieve from its creditors heard in the Singapore High Court on Thursday, just days before its court-sanctioned protection from creditors expires on April 30.

If granted, the debt moratorium will be extended to July 30.

This comes after the restructuring agreement between Hyflux and its would-be white knight SM Investments was scrapped earlier this month. CNA

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