Utico and Hyflux agree to cap advisor fees at $40m

The UAE company also threatens to cut its investment to $200m if a deal has not sealed in time.

UAE-based utilities firm Utico has reached an in-principle deal with struggling water company Hyflux to cap all the fees of its advisors at $40m, according to a media release.

This is said to resolve a key item Hyflux Restructuring Agreement (RA). “Key item remaining was only management oversight held between consent and consult provisions, which Utico has said could be a possible deal breaker,” Utico said in a release.

The water firm’s advisor Nicky Tan led the talks with Utico Board of Directors.

Utico added stated that they will lower Hyflux’s valuation to $200m from $300m by early next week if there is no restructuring deal inked by then.