Hyflux admitted in an announcement that the $2.81 billion claims from the $ 3.59 billion filed by 74 claimants are valid after adjudication. On March 8, it was revealed that 73 claimants filed their proofs of claim that has reached $3.51 billion against the company. Hyflux, however, rejected the claim for the Magtaa destination plant in Algeria amounting to $502.61 million.
The company was founded by Olivia Lum. The founder and its company were known as an outstanding entrepreneur and one of the successful home-grown companies in Singapore. It was one of the critical resources of Singapore in the water sector.
Currently, bondholders of the company suffer from the possibility of losing most of their investments. as the company struggles for survival. It is expected to reduce is operation it is able to secure the necessary support from financers and key company key stakeholders for the proposed reconstruction.
The company admitted claims that include facilities claims, contingent claims, trade & other claims, notes claims, debt securities claims, and subordinated claims and these claims will be included on its debt restructuring plan.
Claims of the holders of preference shares and perpetual securities worth $970 million were admitted by Hyflux. They also included the $277.7 million claim of the holders of medium-term notes. The company rejected the $502.61 million claim of Tahyat Myah Magtaa S.p.A. for the engineering, procurement, & construction (EPC) and operation & management (O&M) contact parent guarantees in respect of the Magtaa desalination plant in Algeria.
The claim worth $79.55 million out of the $120.93 million made by the HSBC Singapore was turned down by the company. HSBC is a trustee of Ascendas REIT for the rent guarantee to be used for the lease of Hyflux Innovation Centre and Hyflux Building at Kallang Bahru.
RCBC Investor Services Trust Singapore' claims amounting to $150.05 million for the rent guarantee for the lease of Tuas Hub was turned down by Hyflux. Almiyah Attilemcania S.p.A. will only receive $38.08 million of its $82.50 million claims for an EPC contract project guarantee in respect of the Tlemcen Project in Algeria.
The fate of the company, whether they will be restructured or liquidated, is on April 5 during the creditors meeting. The company is expected to take a greater amount of strategic complexity as it struggles for survival. The company has served as a water treatment specialist in its first two decades. It was listed on the Singapore Exchange and gained around S$59 million in 2008.
