Utico extends deadline for binding agreement with Hyflux to 27 June

The Middle Eastern firm initially hoped that the deal would have already been sealed by 17 June.

Hyflux’s potential Middle Eastern white knight Utico has extended the deadline for the firm to enter into a binding agreement until 27 June, a filing with the Singapore Exchange (SGX) revealed.

Utico, a private full service utility and developer, expressed intent over a possible $400m injection into the embattled water treatment firm after the former’s deal with SM Investments (SMI) fell through in early April. Utico had previously hoped an agreement would be inked by 17 June.

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Hyflux is continuing to engage with other parties who have expressed an interest to invest in the group’s business and assets. It received a non-binding letter of intent from global multi-strategy investment fund Oyster Bay mulling an investment of up to $500m in May, whilst an unnamed state-owned power service firm from China has also indicated interest.

The firm was able to get some reprieve in end-May after the Court granted another debt moratorium extension to 2 August. Hyflux first applied for a moratorium extension in April, which was granted by the court and pushed back to 24 May, before being extended again to 29 May, after efforts by seven unsecured banks to put the firm and its subsidiary Hydrochem under judicial management as part of the Companies Act were blocked.