Hyflux's Tuaspring deal gets fifth extension

Maybank approved the further extension from 31 January to 28 February.

Maybank approved the further extension of Hyflux’s deadline to ink a binding agreement with a successful investor or bidder for the divestment of Tuaspring, an announcement revealed. The deadline which was previously extended to 31 January, is now on 28 February.

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

Also read: Hyflux creditors urged to file proof of claims by 15 February

Hyflux, Tuaspring and Maybank reached an agreement to divest Tuaspring Integrated Water and Power Project (IWPP) on 6 July 2018. Maybank is Tuaspring’s only secured creditor. The original deadline of 15 October was extended to 29 October 2018, before being puched back to 29 November 2018. On 4 December, Hyflux announced it had received yet another extension to 28 December 2018, which was then again pushed back to 31 January 2019.

In November 2018, Hyflux sought a superior priority debt status for the $530m investment it obtained from the SM Investments consortium comprising of Medco Group and Indonesia conglomerate Salim Group. The firm had applied for the loan, which would be secure through way of first priority fixed charges over its properties, in hopes to settle, discharge or redeem the firm’s unsecured financial debt, preference shares perpetual securities and finance the working capital needs of the Group’s business.