Deadline for execution of Hyflux's Tuaspring deal extended to 29 November

Maybank, Tuaspring’s only secured creditor, approved the extension.

Amidst struggles in restructuring, Hyflux obtained Maybank’s approval to extend the deadline for the execution of a binding agreement with a bidder or investor for its Tuaspring divestment process.

According to an announcement, Maybank gave a nod to an extension until 29 November 2018. The previous deadline is on 15 October 2018.

Following the execution of the binding agreement, Hyflux has to obtain the approval of Maybank, the Public Utilites Board (PUB), and, if necessary, the Singapore High Court by 11 December 2018. Shareholders also need to give an approval by 4 February 2019.

On 6 July 2018, Hyflux, Tuaspring, and Maybank have reached agreement in the divestment of Tuaspring Integrated Water and Power Project (IWPP). Maybank is Tuaspring’s only secured creditor and has provided Tuaspring with banking facilities which are secured by various collaterals and securities over the latter’s assets, including the IWPP.

Hyflux added that the terms of the agreement with Maybank will continue to apply, including the bank’s right to terminate the collaboration agreement if the new deadline is breached.

In June, Hyflux secured a six-month moratorium protecting it from creditors’ legal proceedings and a rescue financing of $200m to help it mend debt issues and restructure assets brought about by its cash crunch.