Hyflux rejects Utico's townhall meeting request

UAE-based firm asked to first address concerns raised by SIAS, other creditor groups.

Hyflux has rejected would-be white knight Utico’s request to announce and hold an immediate townhall meeting with preference shares and perpetual capital security (P&P) holders, the water firm said in a letter posted at the Singapore Exchange.

In the letter posted on 9 October, Hyflux said that Utico “is yet to convince the MTN ISC (advisors) and/or the UWG (unsecured working group) to support its current offer.”

Prior to any such townhall being organised, Utico should first set out clearly how it intends to deal with the concerns raised by various creditor groups, and if necessary, provide revised terms for the creditors’ consideration, the water treatment firm added.

“Please let us know when Utico is able to adequately address the concerns raised by the various creditor groups, and we will then work with Utico and the SIAS on the holding of the townhalls for the P&P Holders,” Hyflux’s letter stated.

On a separate letter posted on the SGX by Hyflux, Utico had asked the embattled water treatment firm to hold a virtual townhall meeting on 10 or 11 October with P&P investors.

The UAE-based company claims that—based on responses allegedly received by SIAS to their letter to P&P last 25 September—majority of respondents have accepted Utico’s proposal.

Utico added that majority of P&P respondents who attended the August 2019 townhall and responded to the October 2020 letter also reportedly accepted their proposal. The latest October 2020 letter has nine participants.

“Hence it is obvious that P&P have accepted our proposal in all three attempts. It is also obvious that the P&P are now giving up on the Hyflux management to give them a bonafide outcome and also that they are not hearing their voice,” Utico stated in its letter, adding that ‘the representative sample size are important indicators.’

Utico asked Hyflux to explain its recent affidavit stating that rival would-be savior Pison Investments has made an offer to P&P. According to Utico, this is contrary to a SIAS letter published on 7 October.