Indonesian conglomerate Salim and Medco Group has just called off its S$530 million bailout to Singapore’s water company Hyflux today (Apr 4), revealing that the company has covered up material information required to determine how much cash is actually needed:
“SMI has been waiting for Hyflux to disclose further material information following multiple requests for such disclosure. The delay in disclosing this material information has prevented SMI from determining a workable allocation between working capital and the settlement amount to creditors under the restructuring agreement.”
Singapore’s Hyflux however threw accusations at its proposed Indonesian financier, claiming that they have “no confidence” at their “conduct and responses”:
“We tried to meaningfully engage with the Indonesian investor group on multiple occasions. However, in light of the investor’s responses and conduct, the company has no confidence that the investor is prepared to continue to complete the proposed investment.”
The soon-to-be-bankrupt Singapore company even bit back, threatening to take “necessary actions” against Salim and Medco Group:
“The restructuring agreement is therefore terminated and Hyflux intends to take all necessary action in connection with such termination.”
Hyflux will have until the end of this month, April 30, to pay its creditors or face liquidation. The only secured creditor is Maybank, who loaned Hyflux S$720 million in 2013, and they will be paid first over shareholders and other bondholders.
Last week, the Singapore government declared their intention to take over the Tuaspring Desalination Plant at S$0, after Hyflux failed to fulfilled the 25-year Water Purchase Agreement it signed. The move sparked protests from shareholders and investors, who accused the government of trying to rake a profit from Hyflux’s misfortunes by paying nothing for the S$1.3 billion plant.