Utico to hike advisors fees cap to $50m if Hyflux rescue deal bags approval

It will reduce the pot to $30m if advisors do not support the restructuring agreement.

Utico plans to raise the cap for advisors fees from $40m to $50m if all of the advisors support the scheme and restructuring agreement (RA) with Hyflux at the court hearing on 29 January, the white knight investor wrote in a letter.

Alternatively, it proposed to reduce the pot to $30m if the agreement fails to garner support from the advisors.

The letter noted that some advisors have rejected the proposal to cap the advisors fees to be decided and distributed by Hyflux's Board at $40m.

"If such approval is not got, Utico cannot continue to commit to a process of a moving goal post or a moving date for a company under moratorium with losing value and maintain the same valuation, payment terms and conditions or the overall recovery to all stakeholders," Utico managing director and EVC Richard Menezes said.

The investor plans to present clearer funding or financing plan once exclusivity is provided to the firm and the RA is approved. Utico's advisors fees were also clarified to be separate from the proposed pot.