Aqua Munda to re-price Hyflux's unsecured debt

The impact of the oil crisis and the pandemic has prompted a reassessment.

Aqua Munda’s director Bambang Sugeng bin Kajairi sent a letter to Hyflux’s board, saying that they have begun a re-assessment on their part on what would be an acceptable and sensible pricing for the secondary market purchase of the unsecured debts, an SGX filing revealed.

The move was prompted by a double whammy from the oil crisis and the pandemic. Despite this, the investor assured that that they are still interested in buying Hyflux’s senior unsecured debts as well as the preference shares and perpetual capital securities.

Aqua Munda further assured that there are “appropriate funding arrangements” in place for any unforeseen circumstances. They expect to secure a significant tranche of the unsecured debts shortly.

In addition, the white knight investor pledged to provide no less than $10m of cash funding to meet the on-going operational costs and other working capital needs of the Hyflux Group. The funding will be made through loan or in any terms mutually agreed.

“[W]e are fully cognizant of the cash flow constraints that the Hyflux Group is facing as a result of the drawn out debt restructuring process and the toll that it has on the on-going operations of the Hyflux Group,” Aqua Munda said.