Hyflux adds to roster of Singapore Inc stumbles

By BLOOMBERG

SINGAPORE • Hyflux Ltd. will put its debt restructuring plan to vote this week, leaving its fate in the hands of unsecured creditors. Whatever the outcome, it will mark another entry in the list of fallen Singapore companies.

The Singapore water-treatment and power group is seeking to fix S$2.8 billion RM8.57 billion) of liabilities by asking senior lenders to accept haircuts of some 75% and junior retail investors of about 90% on their claims. In an April 5 vote on the plan, the creditors will either hand control of Hyflux over to a consortium of Indonesian businessmen, or push the group closer to liquidation.

Elsewhere this week in news on Singapore companies that had previously stumbled, investors were told of the potential for new foreign owners in the city state’s troubled offshore oil field services industry.

Malaysian group Yinson Holdings Bhd is planning to take over Ezion Holdings Ltd, while New York-listed Seaspan Corp is proceeding with a plan to buy Swiber Holdings Ltd’s core assets.

In recent history, several home-grown regional champions have also found new owners with financial power amid liquidity challenges.

Chinese corporations bought semiconductor assembler STATS ChipPac in 2015, while French group CMA CGM SA acquired container liner Neptune Orient Lines Ltd in the following year. Like Hyflux, both counted state investment company Temasek Holdings Pte Ltd as a former investor. — Bloomberg