Sun, Nov 15, 2020 - 4:55 PM
THE Securities Investors Association (Singapore), or Sias, said that it is ready to work with all investors to support Hyflux preference shares and perpetual securities (P&P) holders, after a new rescue offer for the beleaguered water treatment company.
American fund manager Strategic Growth Investments (SGI) - Hyflux's fourth and most recent suitor - has proposed to buy and privatise Hyflux with an investment of some S$208 million in cash.
Said Sias president and chief executive David Gerald in a media statement: "Although the SGI term sheet is non-binding and conditional, it contains a proposal to resolve the debts due to all stakeholder groups, including the P&P holders.
"Sias' position is that it is prepared to work with any and all investors to help provide information to the P&P holders and facilitate a restructuring once a binding and unconditional offer is made in such time that the court may allow."
Under a detailed term sheet issued by SGI last week, P&P holders will get S$41.3 million in cash and a share of new convertible securities in Hyflux. Mr Gerald noted in his statement that the cash payout marks a 4 per cent recovery for the P&P holders.
While SGI will not go ahead with its offer if Hyflux moves into judicial management, Hyflux has backed the restructuring offer, dubbing SGI a "preferred investor" and touting the "single-payment cash recovery … and participation in the company's future growth".
On top of several tranches of outstanding notes, Hyflux also owes some S$900 million to about 34,000 P&P retail investors - a longstanding sticking point in restructuring talks.
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