Deadline for execution of Hyflux's Tuaspring deal gets another extension

Maybank approved the further extension from 29 November to 28 December 2018.

Maybank approved the further extension of Hyflux’s deadline to ink a binding agreement with an investor (SM Investments Pte Ltd) for the divestment of Tuaspring. The deadline, previously extended to 29 November, is now on 28 December 2018.

According to an announcement, the terms of the agreement with Maybank shall continue to apply in the meantime (including Maybank’s right to terminate the collaboration agreement if the new deadline is breached).

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Following the execution of the binding agreement, 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 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.