This included in the event the company’s scheme of arrangement is not obtained at the meeting of its creditors on Apr 5 or if the restructuring agreement signed between Hyflux and SM Investments is terminated for any reason.
Singapore’s national water agency on Mar 5 served a default notice to Tuaspring for failing to keep the plant reliably operational, and failing to produce financial proof that the plant can be kept running for the next six months.
The operational issues date back to early 2017, PUB added.
Under the Water Purchase Agreement (WPA), Tuaspring must deliver up to 70 million gallons of desalinated water a day to PUB for a 25-year period from 2013 to 2038.
If the defaults are not remedied by the original deadline of Aug 5, PUB said it had the right to terminate the WPA and take control of the plant.
On Mar 21, PUB further added that if the WPA is terminated, it will take control only of Tuaspring's desalination plant, and not its power plant, which sits on the same site.
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