Hyflux eyes court protection for debt talks

(May 22): Hyflux, the Singapore water treatment firm, is considering seeking a form of court protection to facilitate negotiations with creditors, people with knowledge of the matter said.

The company is considering asking the Singapore courts for a 30-day moratorium preventing creditors from taking certain actions that could hurt its financial position, according to one of the people. The move would give Hyflux space to work out an arrangement with the creditors, the person said, asking not to be identified because the information is private. It may file an application as soon as Tuesday, May 22, the person said.

Hyflux has been working with an adviser to explore options for managing its debt load, the people said. The turnabout in fortunes for the company, whose founder Olivia Lum was a poster child for local entrepreneurs, adds to signs of pressures that smaller borrowers in the Singapore debt market face.

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