Hyflux signs $400m restructuring deal with Utico

The UAE-based firm will subscribe in 95% of Hyflux’s new shares.

Hyflux has inked the rescue deal with UAE-based white knight Utico for a total of $400m, according to an SGX filing.

Utico will subscribe in 95% of Hyflux’s new shares for an aggregate amount of $300m and will also provide a working capital line grant of a maximum $100m. The investment will be undertaken by way of private placements.

The filing also stated that a total of $250m will be allotted to pay holders of the unsecured financial debt. Debt security holders can either receive an amount equal to the lesser of $1,500 and 50% of the aggregate value of the debt securities through an upfront cash payment or to have it paid to them over a two-year period in five equal instalments, together with interest of 1.25% per annum.

This follows after the Securities Investors Association of Singapore (SIAS) has expressed concerns over the proposed rescue deal due to its lack of finality. The struggling water firm is also due for another court hearing this coming 29 November after having its debt moratorium extended for another two months.