Hyflux mulls court protection amidst creditor talks

It will ban creditors from taking action that could hurt the firm's financial standing.

Bloomberg reports that water treatment firm Hyflux is reportedly considering a 30-day moratorium banning creditors from taking action that could deal further damage to the firm's sensitive financial position.

The legal action would give Hyflux room to work out an arrangement with its creditors, insider sources told Bloomberg as the company continues to explore options for managing its growing debt load.

The water treatment firm registered its first annual loss of $22.2m in 2017 since listing with expectations of further damage as an oversupply of gas continues to squeeze earnings from its energy business. Net debt also ballooned to 165 times its earnings before interest, taxes, depreciation and amortisation as of end-March, from around 32 times last year.

Hyflux is also the second worst performing stock on the FTSE Strait Times All Share Index this year after crashing 39%.

Read the full report here.

Photo from Hyflux