Date: April 4, 2019
SIAS notes with regret the cancellation of Hyflux restructuring agreement with the Salim-Medco consortium (SMI). This has come as an unexpected development.
I had called Olivia Lum to determine whether there is an alternative solution that can be presented to the investors and creditors. According to her, the board will quickly re-engage with previous interested parties who had shown keen interest and were bidding for Hyflux with SMI. She said that the board needs some time to negotiate with interested parties and has asked that they be given some time and space to work on an alternative proposal to avoid liquidation.
SIAS calls on the senior creditors to give the company a chance to provide an alternative proposal and not put the company under liquidation hastily, in which case the retail investors who are the perps and preps holders will lose everything. I have, on behalf of the retail investors, conveyed to her the dissatisfaction with the last offer for them and had requested to bear that in mind when discussing a new deal.
In the circumstance, SIAS calls on all stakeholders to allow Hyflux time and space to work out an alternate solution and support the board to provide the solution.
Founder, President & CEO
Securities Investors Association (Singapore)