The news comes after Hyflux, which currently faces $2.8 billion of liabilities, last week saw its restructuring plans collapse when SM Investments – an Indonesian consortium comprising Salim Group and Medco Group – defaulted on its proposed $450 million investment deal to invest in the firm.
The potential lifeline agreement fell through when Medco Group did not provide written confirmation that it would proceed with the rescue deal that would have otherwise seen Hyflux minority investors claw back three cents in cash and seven cents worth of cash for each dollar they had invested.
See: Hyflux scraps restructuring plan after spats with investors
The next case management conference is scheduled for April 25, by which Hyflux will have decide on whether it will be applying for a deadline extension or not.
Should it do so, the firm will have to present “something fairly tangible” to the Singapore courts in order to justify an extension grant, said Justice Aedit Abdullah at the April 11 conference.
Without a moratorium extension nor the emergence of a new rescue deal, Hyflux is likely to face liquidation in order to resolve its operational and financial defaults.
