SINGAPORE (June 26): The long-running restructuring of Hyflux is seeing another twist.
A new suitor, Indonesian tycoon Johnny Widjaja, has expressed interest to rescue the company by putting in $300 million to buy up existing debt in exchange for shares and then put in another $100 million as working capital.
According to Hyflux in an SGX announcement, detailed terms of the proposal have yet been made available.
“Mr Widjaja has further stated, amongst other things, that he would not consider making this investment if the current management of Hyflux, including Ms Olivia Lum and the Board of Directors are removed, or if any member of the Group is placed into judicial management or liquidation,” says Hyflux.
According Hyflux, Widjaja has also provided a letter from an unnamed “leading Indonesian bank” confirming that he has the funds and is “ready, prepared and willing” to use the money to invest in the company.
“The Company will be engaging with Mr Widjaja and/or his advisors to obtain further information in respect of the terms of his proposed investment,” says Hyflux.
Since Hyflux sought bankruptcy protection back in May 2018, it has been engaged with protracted rounds of talks with potential rescuers but due to the complexity of the rescue, nothing’s confirmed yet.
Incidentally, the first potential rescuer was from Indonesia as well: another Indonesian tycoon Anthony Salim offered a package of $530 million but both parties fell out.
Most recently, Hyflux has been embroiled in numerous rounds of to and fro with another suitor, Utico.
Hyflux’s current board of directors, including founder Lum is now under probe by the Commercial Affairs Department, the Monetary Authority of Singapore, and the Accounting and Corporate Regulatory Authority for potential lapses of disclosure, among other possible offences.
