Date: November 15, 2020
As announced by Hyflux on 13 November 2020, SGI issued a non-binding and conditional term-sheet proposing various terms for Hyflux’s creditors. In SGI’s term-sheet, P&P holders are offered a cash consideration of S$41 million (which represents a 4% recovery) and 10% of newly issued convertible securities (“CS”) in Hyflux. The CS are zero par, zero liquidation value and zero dividend. The CS converts into Class B common equity, which is non-voting, upon performance hurdle based on a liquidity event (e.g., IPO, dividend, recapitalisation, 3rd party equity capital injection, majority sale). The Class B common equity is fully subordinated to Class A common equity. P&P holders are strongly encouraged to refer to Hyflux’s announcement dated 13 November 2020 for the full terms and conditions of SGI’s proposed offer.
On 13 Nov 2020, SGI clarified that it would not continue with the restructuring proposal, if Hyflux is placed under judicial management. SIAS notes that 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’s 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.
David Gerald
Founder, President & CEO
SIAS
