Hyflux

[¯|_(ツ)_/¯]

The Company wishes to clarify that Utico is wholly responsible for the content of the said letter, including all views, comments and/or statements therein, whether about the Company, the Restructuring Agreement with Utico dated 26 November 2019 which has ipso facto ceased and determined, or otherwise. The Company should not be taken to be endorsing, confirming or agreeing with Utico and/or any part of the letter.
https://links.sgx.com/FileOpen/Announcem...eID=626003

(click for Utico extension letter)
Stay home and stay healthy, everyone.

[sureshp]

Hyflux has lost its main asset to PUB. And it has had no new contracts coming since then.
What residual value in the company that attracts so many white knights knocking at its door?

Could it be a delay tactic to extend the debt moratorium?

From a balance sheet perspective, we understand TuasSpring to be a liability more than an asset. The last time VBs calculated this here, it was incurring consistent negative FCF - It was selling water to PUB at a loss and its power generation wasn't patching the loss (as it was supposed to). Accountants can put any number on an "asset" but it is up to the investor to judge their own.

From the previous breakup with Pak Salim's SM investments to the current shaky relationship with their 2nd white Knight Utico, and the mushrooming of new suitors, it is becoming clear that Hyflux indeed has an asset, ie. its intangible brand, management know-how and business relationships. Of course, these are not evident on its balance sheet. Unfortunately, these were not enough to save Hyflux then but it may help to recover some money for existing investors (although for most investors, they will still only get back pennies for a dollar)

As for whether it is any delay tactic, it is hard to imagine that one has the clout to attract multiple parties to try to stage delay tactics unless there are genuine proposals in the first place.

Speaking of genuine proposals, what do you make of Pison? Could be a silver lining?

[weijian]

Speaking of genuine proposals, what do you make of Pison? Could be a silver lining?

hi sureshp,
I have to apologize that I do not have much insights to the other suitors (nor the current suitor Uttica). Personally, I do not think it makes much of a difference for OPMIs, with the exception of the smallest ones holding their debt. But from Mgt perspective, additional suitors are their silver lining.

[sureshp]

Speaking of genuine proposals, what do you make of Pison? Could be a silver lining?

hi sureshp,
I have to apologize that I do not have much insights to the other suitors (nor the current suitor Uttica). Personally, I do not think it makes much of a difference for OPMIs, with the exception of the smallest ones holding their debt. But from Mgt perspective, additional suitors are their silver lining.

No worries man! I just came across this article. Doesn't sound like going the JM route is gonna be great for shareholders. 

https://www.onlinecitizenasia.com/2020/0...d-lenders/

[¯|_(ツ)_/¯]

9 Sep 2020 Another Utico offer
Hyflux annoucement maintain the same message that original Utico offer had lapsed and nothing is binding with Utico.
https://links.sgx.com/FileOpen/Announcem...eID=631138

Either Utico don't get it or trying to bite on Hyflux as there are really good deals for them.
In Utico's 9/9/2020 letter, it also highlighted Pison offers to P&P holders too.
Quite a interesting read but not sure whether it is factual or not.
https://links.sgx.com/FileOpen/Letter%20...eID=631139

Stay home and stay healthy, everyone.

[¯|_(ツ)_/¯]

Very interesting letters exchanged. 
Interested valuebuddies should read first.
There is definitely value in Hyflux stocks.
https://links.sgx.com/1.0.0/corporate-an...b152d91fbe

Stay home and stay safe, valuebuddies.

[¯|_(ツ)_/¯]

UWG had, on 17 September 2020, written to inform Utico that they do not accept the terms of Utico's revised offer and would not consider any non-cash offer. Accordingly, Utico has been invited to provide details of a further revised proposed cash offer for the consideration of the senior unsecured creditors.
https://links.sgx.com/FileOpen/Letter%20...eID=633650

link to the rest of letters

Looks like there is really $$$ to be make in Hyflux.


Stay home and stay safe, everyone.

[Shiyi]

The BOD of Hyflux acts as postman delivering letters from Pison, Utico...without giving its response.
Few people know exactly what is going on. The longer it drags, more cash will be burned to pay for the professional fees.

[¯|_(ツ)_/¯]

Update on JM Application:
The Company wishes to announce that as at 9pm, today (12 October 2020) it has received 100 letters from various creditors of the Group which oppose and object to the JM Application and support the Group’s applications for a further two-month extension of the moratoria.
https://links.sgx.com/FileOpen/Announcem...eID=634957

Update on Strategic Growth Investments(SGI) Formal Expression of Interest:
We set out in this letter, the financial aspect of our proposed investment in the Company. If the financials are acceptable in principle to the Company and its creditors, then we will immediately work on the terms and conditions of the Investment.
1. Considerations
2. Structure and Financing
3. SGI and our Investment Thesis
4. DD and Approvals
5. Conditions

https://links.sgx.com/FileOpen/Expressio...eID=634937

Stay home and stay safe, everyone.

[Shiyi]

On the eve of every court hearing on the debt moratorium, a new White Knight will spring up.
Interesting!