Hyflux Ltd., the embattled Singapore water-treatment and power company, is in advanced talks with at least two potential investors about taking a strategic equity stake in the group as part of a restructuring plan.
The discussions with these investors are taking place concurrently with efforts to sell its desalination plant known as Tuaspring, its legal adviser WongPartnership LLP said in an update during a case management hearing in court on Monday. Hyflux has an October 15 deadline to sell the plant, which is Southeast Asia’s biggest.
The group is racing against the clock to put together a scheme of arrangement to reorganize debt as a six-month debt moratorium expires around mid-December. It has also opened so-called data rooms to provide more information about its projects and financial accounts, as it seeks extra funds to help alleviate its liquidity strain.
At a meeting in court, Hyflux was asked to further update the court on October 31 as more creditors started banding together and hired advisers. Hyflux also has been asked to return to the court on November 19 for the judge to assess if the company would need to extend its debt moratorium.
Hyflux is led by founder Olivia Lum, who was a poster child for Singapore entrepreneurs before Hyflux’s finances were strained by an ill-timed entry into the energy business. It started a court-supervised reorganization in June under the weight of S$2.95 billion of liabilities.