Restructuring agreement at risk due to Tuaspring default: Hyflux.
HYFLUX'S restructuring agreement with SM Investments Pte Ltd may be terminated if defaults by Hyflux subsidiary Tuaspring Pte Ltd are not remedied within two weeks, the water treatment company said in a Singapore Exchange filing on Monday.
Hyflux on Monday received a notice from its investor SM Investments, which referred to the default notice slapped on Tuaspring by the Public Utilities Board on March 5. PUB's notice said the national water agency would exercise its right to terminate its Water Purchase Agreement with Tuaspring and take control of the plant if all defaults are not fully resolved within the default notice period.
According to the restructuring agreement between Hyflux and SM Investments, the investor has the right to terminate the agreement if a"prescribed occurrence" occurs and, if the occurrence can be remedied, it is not remedied within two weeks or such other mutually agreed period. Hyflux or Tuaspring ceasing or threatening to cease to conduct its business in the usual or ordinary course is a"prescribed occurrence" within the meaning of the restructuring agreement.As a result, SM Investments may assert its right to terminate the restructuring agreement if the matters stated in the PUB notice are not remedied by the end of the two-week period, which is April 1.
Under the PUB default notice, Tuaspring has a cure period of 30 days until April 5 or"such longer period as may be reasonable" to consult with PUB on the steps it must take to cure the alleged defaults. If the defaults are not cured in time, PUB has the right to terminate the water contract by giving written notice of not less than 30 days to Tuaspring. PUB can also take control of the plant, once the default notice period expires.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Hyflux postpones upcoming town hall meeting as it looks for ‘larger venue’SINGAPORE: Embattled water treatment firm Hyflux is postponing Wednesday's town hall meeting due to the need to secure a “larger venue”, it said ...
Read more »
Stocks to watch: Hyflux, F&N, Lippo Malls, JCG Investment, Acesian, China MiningTHE following companies saw new developments that may affect trading of their shares on Tuesday: Read more at The Business Times.
Read more »
Hyflux admits S$2.81b in claims after adjudicationWATER treatment company Hyflux has tossed out some of the claims filed against it after adjudication, but the bulk of the S$3.59 billion demanded by some 74 groups of claimants still stands. Read more at The Business Times.
Read more »
Fat cats or top dogs: Is the Singapore CEO overpaid?THE recent revelation that the head honcho of Hyflux (together with other top executives) continued to make millions while the troubled water treatment firm was drowning in debt sent shock waves of disbelief across Singapore even as investors brace for the fall-out. Read more at The Business Times.
Read more »
Hyflux postpones upcoming town hall meeting as it looks for ‘larger venue’SINGAPORE: Embattled water treatment firm Hyflux is postponing Wednesday's town hall meeting due to the need to secure a “larger venue”, it said ...
Read more »
Stocks to watch: Hyflux, F&N, Lippo Malls, JCG Investment, Acesian, China MiningTHE following companies saw new developments that may affect trading of their shares on Tuesday: Read more at The Business Times.
Read more »
Hyflux admits S$2.81b in claims after adjudicationWATER treatment company Hyflux has tossed out some of the claims filed against it after adjudication, but the bulk of the S$3.59 billion demanded by some 74 groups of claimants still stands. Read more at The Business Times.
Read more »
Exclusive: Retailer Pier 1 taps debt restructuring lawyers - sourcesU.S. home furnishing retail chain Pier 1 Imports Inc has tapped debt restructuring lawyers to navigate potential negotiations with lenders as it ...
Read more »
Rite Aid shakes up top management, to cut about 400 jobs in restructuringRite Aid Corp said on Tuesday its chief executive officer would exit as part of a revamp of its top deck, and that it would slash about 400 job ...
Read more »