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Hyflux
22-10-2018, 10:16 PM.
Post: #411
RE: Hyflux
Why would SM want to inject money to Hyflux just to pay down debt-instruments? It makes no financial sense to SM. It is the company that is being saved, not the shareholders or the debt holders. Olivia is happy because she can have her job back, and another shot at making things work.

You can be sure that SM is certainly not here to do charity.

As for the debt holders, between say 30 cents on the dollar, or zero if SM walks away, I think most will see that this is perhaps as good as it gets. Debt holders have nothing to bargain with.

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23-10-2018, 06:28 AM.
Post: #412
RE: Hyflux
(22-10-2018, 10:10 PM)dreamybear Wrote: According to Hyflux's webpage https://www.hyflux.com/financial-reorgan...n-process/ updated today 22 Oct 2018,  .........

Q: "How does this affect the Tuaspring sale process? "
A: "The Investor is investing in the existing Hyflux Group, which includes Tuaspring. Hyflux will no longer be pursuing a voluntary sale of Tuaspring and will be engaging with the secured bank creditor on this."
...........

It seems that SM / Hyflux intends to keep TS.

My guess is :

The Sembcorp bid may be around 400m which is the amt Maybank can recover in the event of a sale to Sembcorp. Now, SM is injecting a similar amount for Hyflux to pay off Maybank and the 130m working capital is to last till the various projects turn cash flow positive/profitable.

This makes it likely that one of the plans would be for the preference shares/perpetual bonds holders' stakes to get converted into equity, making it a "cleaner equity" structure, and SM would own 60% after that.

130 million is not working capital. It is , together with 400 million , to pay back the various creditors.

30 million is the working capital, and termed as rescue financing .

400+130-30 million =500 million to pay back the various existing creditors since 30 million is ranked the highest as it is rescue financing

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23-10-2018, 06:32 AM.
Post: #413
RE: Hyflux
(22-10-2018, 10:16 PM)karlmarx Wrote: Why would SM want to inject money to Hyflux just to pay down debt-instruments? It makes no financial sense to SM. It is the company that is being saved, not the shareholders or the debt holders. Olivia is happy because she can have her job back, and another shot at making things work.

You can be sure that SM is certainly not here to do charity.

As for the debt holders, between say 30 cents on the dollar, or zero if SM walks away, I think most will see that this is perhaps as good as it gets. Debt holders have nothing to bargain with.
Yes. Not a charity.

The thing is , how do we know this is the best deal?
Does the management retention shares for Key personnel play a part?

I mean, example,there is a deal 1billiin for 60%. Current BOD booted out.

Compared with current 400 million for 60%, current BOD gets management rententjin shares.So the BOD chooses this instead.

Retail investors don't know if his is the case.

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23-10-2018, 09:22 AM. (This post was last modified: 23-10-2018, 09:30 AM by cfa.)
Post: #414
RE: Hyflux
(23-10-2018, 06:32 AM)sgdividends Wrote:
(22-10-2018, 10:16 PM)karlmarx Wrote: Why would SM want to inject money to Hyflux just to pay down debt-instruments? It makes no financial sense to SM. It is the company that is being saved, not the shareholders or the debt holders. Olivia is happy because she can have her job back, and another shot at making things work.

You can be sure that SM is certainly not here to do charity.

As for the debt holders, between say 30 cents on the dollar, or zero if SM walks away, I think most will see that this is perhaps as good as it gets. Debt holders have nothing to bargain with.
Yes. Not a charity.

The thing is , how do we know this is the best deal?
Does the management retention shares for Key personnel play a part?

I mean, example,there is a deal 1billiin for 60%. Current BOD booted out.

Compared with current 400 million for 60%, current BOD gets management rententjin shares.So the BOD chooses this instead.

Retail investors don't know if his is the case.

She would choose the one who would agree to retain her for many more years . YTL bought over Power Seraya , the whole management team were replaced one year later . Even capable CEO John Ng  had to leave in 2013.
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.

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23-10-2018, 09:53 AM. (This post was last modified: 23-10-2018, 11:01 AM by AQ..)
Post: #415
RE: Hyflux
(22-10-2018, 08:40 PM)sgdividends Wrote: BUT, SM just wants the full and final settlement of perps, prefs, MTNs e,t,c. So they are sharks. Not white knights. I hope the above pans out but Media seems to state that they intend to keep assets intact.

If SM r sharks then Sg Inc is sharks-morphed-into-vultures, with Sembcorp (with the luxury of the monopoly of bids) bidding half the replacement costs. This is with USEP @ 117 averaged for Sep vs the lows of 60-80 for past 2 yrs.

Still to see if PUB approves SM's bid

best case scenario:  shareholder's loan of 130mio will settle 265mio of MTN; 400mio equity settle 900mio perps+pref (so debt-for-debt and equity-for-equity) so
$1 MTN claim = 49c cash+ rest in equity
$1 perp/pref claim = 44c cash+ rest in equity

worse case scenario:
$1 MTN gets full repayment
$1 perp/pref claim gets 29c cash+ rest in equity

whether u vote for it will dep on cost of entry+what u think of valuation post restructuring.

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23-10-2018, 09:56 AM.
Post: #416
RE: Hyflux
Hi AQ,

The condition for SM investment is that bondholders and perpetual and preference shareholders do not have any more claims to hyflux.. So the first paragraph valuation of hyflux may not hold true.

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