SIAS questions new Hyflux saviour, urges town hall

The organisation expressed concern for the non-disclosure of the P&P proposal.

“Who is behind Aqua Munda?”

The Securities Investors Association (Singapore) (SIAS) posed the question on its latest letter to embattled water firm Hyflux’s board, along with the question of whether the new white knight has sufficient funds to address its creditors--as well as its future plans for the water firm.

The organisation also expressed concern for the non-disclosure of the proposal for P&Ps.

“What is the proposal to the P&Ps? Why can’t it disclose the proposal to P&Ps upfront, together with the proposal to the senior unsecured creditors? Such lack of transparency causes great concerns!” the letter read.

Separately, a member of the informal steering committee questioned whether the board of directors of Hyflux, its legal and financial advisers hold an interest in Aqua Munda.

SIAS also asked for confirmation whether Olivia Lum, the founder and CEO of Hyflux, will be giving up her entitlement in her position as a holder of preference shares and perpetual securities for the benefit of the other P&Ps under any scheme proposed.

“Please also confirm whether the other Hyflux board members will take the same position as Ms Lum under the Utico deal,” added SIAS.

In light of the various queries raised, SIAS urged Hylfux to organise a townhall with P&P holders sometime between 11 March and 17 March.

SIAS also proposed for Hyflux to set up an escrow account containing $1.5m for SIAS advisors.