Hyflux

Hyflux's share price has fallen in the last 5 years (from 1Jul13) consistently, from $1.25 to only $0.215 now. This must be a painful and sad affair for all those who have believed in SG Government's water strategies, Hyflux as a stock, and Olivia Lum, Hyflux's founder/Chairman/CEO. If we take a closer look into Hyflux's latest B/S, it should be quite clear to most that Hyflux has been managing its finances aggressively.

When I last drove past Hyflux's huge Tuaspring desalination/power plants on Tuas South Ave 3, my simple conclusion was that such large-scale infrastructures should have been funded by PUB/SG Government in the first place. Let's see how Hyflux and PUB can unwind from this seemingly under-utilised asset..

it's a bit different now that Malaysia has a change of gov.... :O
3 sen per gallon is up for negotiation and suddenly water security has become a talking point again...

renewed interest for sg gov in hyflux again...

would the deal be affected?

http://infopub.sgx.com/FileOpen/Project%...eID=496518

http://www.bbc.com/news/world-europe-44080723

Not really unexpected I guess

Hyflux Ltd., the Singapore water treatment firm, is considering seeking a form of court protection to facilitate negotiations with creditors, people with knowledge of the matter said.
The company is considering asking the Singapore courts for a 30-day moratorium preventing creditors from taking certain actions that could hurt its financial position, according to one of the people. The move would give Hyflux space to work out an arrangement with the creditors, the person said, asking not to be identified because the information is private. It may file an application as soon as Tuesday, the person said.

http://infopub.sgx.com/FileOpen/HL%20-%2...eID=506928

As part of the reorganisation process, the Board of Directors will be working with its advisors to
conserve its cash and only make payments critical to the continued operation of the Group’s businesses.
In this connection, the Company has been advised that the payment of the distribution on its S$500
million 6.00% Perpetual Capital Securities (SGX:BTWZ) which will be due on 28 May 2018 (on
account of 27 May 2018 falling on a Sunday) should not be made at this point in time.

I will not be surprised that we will witness another round of bond conversion to equity deal. Hyflux is burning too much cash and it's massive debt interest is killing it. I wonder if banks holding millions of debt will extend them a lifeline through low interest deals

I do not mind giving Ezion solution to hyflux as a solution. Easily digestable and it will nett me a handsome remeuration

wow! announced that they are gg to pay the distribution:
http://infopub.sgx.com/FileOpen/Announce...eID=504862

only to announce that they dont intend to pay the distribution:
http://infopub.sgx.com/FileOpen/HL%20-%2...eID=506928

i didnt think the management credibility of OL and team could sink any lower. from the letter to shareholders - "On the ground, it will continue to be business as usual." - that's wonderful. business as usual is what got you here!
http://infopub.sgx.com/FileOpen/Letter%2...eID=506929

(22-05-2018, 11:11 PM)CY09 Wrote: I will not be surprised that we will witness another round of bond conversion to equity deal. Hyflux is burning too much cash and it's massive debt interest is killing it. I wonder if banks holding millions of debt will extend them a lifeline through low interest deals

I do not mind giving Ezion solution to hyflux as a solution. Easily digestable and it will nett me a handsome remeuration

Assuming that all the hyflux's assets can be sold at 0.5 to 0.8 of valuation, it might be difficult to convince bondholders to accept a conversion deal. They might prefer to liquidate hyflux

If Hyflux can be liquidated at said valuation -- most, if not all -- of the debt holders will get back their monies. There is no need for them to convert to equity.

This also means that most likely the shareholders will not get back anything.

Just months earlier, Olivia Lum has cleverly given herself a lifeline by spinning off the consumer business. And offering to buy the unwanted shares. If she gets removed as part of the restructuring, she'll move on with a new mission of selling elo water.

(23-05-2018, 07:47 PM)karlmarx Wrote: If Hyflux can be liquidated at said valuation -- most, if not all -- of the debt holders will get back their monies. There is no need for them to convert to equity.

This also means that most likely the shareholders will not get back anything.

Just months earlier, Olivia Lum has cleverly given herself a lifeline by spinning off the consumer business. And offering to buy the unwanted shares. If she gets removed as part of the restructuring, she'll move on with a new mission of selling elo water.

When she was asked to make an offer to takeover the spin-off subsidiary, is a RED FLAG. I asked my friend to better cut loss. Get back something rather than HOPE. Fortunately he did. I think this is the first time he learn to cut loss....