Hyflux slapped with $78.68 claim from BNP Paribas

The French bank is claiming the sum over a performance bond issued to Hyflux’s associate firm Tahlyat Myah Magtaa (TMM).

Embattled water firm Hyflux revealed that it has received a letter from French bank BNP Paribas demanding an aggregate sum of $78.68m (US$57.73m), according to a filing with the Singapore Exchange (SGX).

The sum includes the claim amount and handling commission, fees and charges, including those due and payable from the period of 1 April 2018 to 8 May 2019.

In 23 April, Tahlyat Myah Magtaa SpA (TMM), which is the project company for Hyflux’s desalination plant of 500,000m3/day in Magtaa, Algeria, filed for a claim worth $6.29m (US$8.53m) in respect of a performance bond issued by BNP Paribas.

Also read: Hyflux seeks 3-month extension of protection from creditors

“As stated in the 23 April announcement, the company disputes TMM’s right to make such claim and is taking appropriate legal steps, including having filed an injunction application against the issuer of the performance bond that guarantees payment of claims by TMM,” Hyflux stated.

That said, Hyflux acknowledged that the demand from BNP Paribas, like the claims from TMM, is expected to have a material impact on the financial performance of the group.

Hyflux is in talks with potential white knight Utico, a Middle Eastern private full service utility and developer, which expressed intent over a possible $400m injection after its earlier deal with SM Investments (SMI) fell through.