Utico FZC reached a deal with Hyflux in November to invest a total of $400 million in Hyflux, but that agreement still faces hurdles – from investor approval to the distribution of $40 million in fees for lawyers and consultants. The entry of mystery bidder Aqua Munda, which offered to buy up the company’s debt, has prompted further uncertainty.
The delays in the high-profile restructuring has frustrated investors. Hyflux’s collapse has left about 34,000 retail investors in the lurch.
SIAS is also proposing that Hyflux set aside $1.5 million in an escrow account to cover fees for association’s advisers, it said. The group said its advisers hadn’t been paid in full nor had they been assured of future fees because there is no guarantee the Utico deal will be successfully completed.
The association urged Hyflux and Utico to reassure investors that the deferred payment obligations are sufficiently provided for by producing evidence.
