Regulators Refusing to Act - Hyflux & Noble Group's Decline

[JustLikeThis]

Good morning, I am pleased to share with you that the third townhall is postponed, because someone went to lim kopi. Definitely not because they need a larger venue; the turnout application for third townhall is not really larger than the second townhall (Perps, pref and notes) as of last weekend. They lied again.

https://www.channelnewsasia.com/new...oming-town-hall-meeting-larger-venue-11333546

Hyflux's list of scandals might involve b____________________. Kroll is now involved.
(Findings not released/confirmed)

 

[JustLikeThis]

Indonesia is likely to act in cahoots with Mahathir to blackmail Singapore. Salim will control Hyflux who is involved in JV and wholly-owned facilities that supply 15-25% of our water needs. Imported water from Malaysia accounts for 25-35%.

Embattled Hyflux acquired by Indonesian groups who now control 25% of SG’s water needs
https://www.theonlinecitizen.com/20...-groups-who-now-control-25-of-sgs-water-needs
Malaysia to seek international arbitration if Singapore does not renegotiate water deal
https://www.channelnewsasia.com/new...n-water-agreement-malaysia-singapore-11336118

 

[Empower]

Debtwire - Hyflux suitor SM Investments stays course for now despite PUB threat

Indeed, Hyflux’s disclosure last week that the PUB – a government entity – was taking such an aggressive stance has been met with dismay given the likelihood the Singapore authorities would be keen to avoid a scenario where the country’s retail investors would be suffering even greater losses on their Hyflux investments as a result of the company’s restructuring plan failing, said the two creditors.

Also, the PUB’s actions are likely to provoke Maybank, whose security rights over Tuaspring arise from a SGD 800m project finance loan which had approximately SGD 514m outstanding when Hyflux filed for protection on 22 May last year, the two creditors noted.

Maybank has on numerous occasions extended the deadline for Hyflux to dispose of Tuaspring but its willingness to allow the debtor to run the sale is being tested by the apparently inconsistent stance PUB and other the Singapore government bodies have on the matter, said one of the creditors.

“Initially, I thought the PUB was doing this to emphasize to creditors that Hyflux needs to be financially sound and therefore, that creditors should vote in favour of the restructuring plan,” said the second creditor. “But that message has been understood as something else; SMI is in a panic and talking about how much money they need to put into this to fix the problems.”

SMI, a joint venture between Indonesia’s Salim and Panigoro families, is in talks with the Public Utilities Board (PUB) as well as representatives of Singapore government in an effort to resolve the Tuaspring default, three sources familiar said.

“SMI, led by chief executive Arief Sidarto, is negotiating day and night with the Singapore government on top of PUB. It’s high-level talks,” said one of the three sources familiar, who is based in Indonesia and close to the investor.

 

[Empower]

 

[Empower]

 

[Empower]

 

[Empower]

 

[JustLikeThis]

“SMI, led by chief executive Arief Sidarto, is negotiating day and night with the Singapore government on top of PUB. It’s high-level talks,” said one of the three sources familiar, who is based in Indonesia and close to the investor.

Thanks for sharing. I was under the impression that Olivia said that the Indonesians were pre-approved in principle. Why the need to get clearance again?

 

[JustLikeThis]

Wonderful 224 likes! Make it 2000!

This government messed things up and don't want to help the victims, then get a new one in, so that Hyflux victims can have another chance.

 

[FuckOttoke]

"Yes" votes will be >90% easily , 3% cash better than $0 !

dumbfuck sinkies only know how to kpkb , but last minute always bend over and get fucked in their ass !

 

[rushifa666]

This is clearly nknsense pap at work aagajn. The idiots can sell off electricity company to bastard arabs. But anykne else cannot?

 

[JustLikeThis]

This is clearly nknsense pap at work aagajn. The idiots can sell off electricity company to bastard arabs. But anykne else cannot?

A China state-owned enterprise offered close to book value for Tuaspring but blocked by PUB. However, chinese are also involved in various power and water projects in Singapore.

 

[JustLikeThis]

SGX gave Noble's management ample time to get away despite the serious accounting frauds, and in cahoots with banks to mislead the shareholders and bondholders.

Getting tougher on auditors after high-profile defaults
https://www.businesstimes.com.sg/ba...ugher-on-auditors-after-high-profile-defaults

The Singapore Exchange has in the past defended its oversight of Noble, citing a clean bill of health by the company's auditors Ernst & Young. PricewaterhouseCoopers LLP also produced a study in 2015 that stated the commodities trader complied with international rules in valuing long-term contracts, even as it qualified its assessment by saying Noble needed to improve governance and deal valuation methodology.

In response to questions, the Singapore Exchange referred Bloomberg to a speech by Tan Boon Gin, chief executive officer of Singapore Exchange Regulation in January. The Singapore Exchange will play "a much more active role" in determining the scope of the year-end audit for selected companies, Tan said at that time. It has already started doing so by meeting with auditors and audit committees of about 15 listed companies so far.

SGX will also propose a new power to require the appointment of a second auditor in "exceptional circumstances" Tan said. In addition, it proposes that all listed companies have to appoint either a Singapore-based auditor, or to have a Singapore-based auditor jointly sign off on a year-end audit conducted by a foreign auditor.

"We are fully cooperating with the enquiries and are unable to comment on the details at this time," EY said in response to questions from Bloomberg. A PwC spokesman said the firm is unable to comment on anything related to Noble as it is a past client.

Singapore's Accounting and Corporate Regulatory Authority conducts inspections on registered auditors to assess their compliance with auditing standards, according to a spokesperson.

The regulatory body may suspend or cancel a public accountant's registration for serious audit deficiencies. It is also "looking into amending the law to allow sanctions to be meted out on firms for lapses in quality controls," the spokesperson said.

 

[JustLikeThis]

Hyflux directors, mgt & auditors kooning from 2016 onwards?
https://atans1.wordpress.com/2019/03/13/hyflux-directors-mgt-auditors-kooning-from-2016-onwards

HYFLUX has taken a S$916 million impairment for the nine months ended Sept 30, to adjust for a fall in carrying value of the Tuaspring water and power plant and other write-downs.
This figure was released … after Hyflux submitted its latest statement of financial position to the High Court.
“The impairment loss . . . relates predominantly to the impairment loss arising from the assessment of the carrying value of Tuaspring and the impairment of receivables for previously completed projects,” …
Hyflux had asked a valuer to conduct an up-to-date valuation of the Tuaspring plant, but no exact figure was shared in the submission.
BT report in early March​

But

When Hyflux was first awarded the Tuaspring project in 2011, based on the financial model which modeled the cashflow projections from the project, the power plant was expected to generate profits from day one. This financial model was audited by an external financial model auditor and furnished to the offtaker. In 2013 when Tuaspring was able to secure a non-recourse project financing loan, the lender commissioned an independent market study of the project which arrived at similar conclusions supporting the book value of approximately SGD1.4 billion.​

And when it did its 6% Perpetuals in 2016, the book value attributed Tuaspring was around this value. So in the light of the loss in 2017, it’s reasonable to ask why the book value of Tuaspring was not looked at again before the auditors blessed the 2017 accounts in March 2018,

When KPMG issued an unqualified opinion on the full year results for the Hyflux Group in March 2018, there were no events or conditions that individually or collectively, cast significant doubt on the going concern assumption as at the balance sheet date of 31 December 2017, or at the audit report date of 22 March 2018.​

if not earlier in 2017 when signs of trouble may have become apparent. Unless of course maybe Hyflux’s finance and accounting departments were staffed by Bankers or their relatives and friends?

I’ll end with more extracts from BT report to give an idea of how big the hole caused by the drop in book value of Tuaspring and how the banksters are getting their money back while PAP voters are being screwed:

At the end of September 2018, the value of Hyflux’s held-for-sale assets was S$651 million, or S$824 million lower.
Hyflux said: “This valuation is based on the most recent market study conducted by K4K Training & Advisory SL, the same consultant who did a similar market study in 2016 (which supported the valuation then). The view taken in this most recent market study is significantly different from that in 2016 due to . . . the losses in the electricity market in the recent years and the projected lower spark spreads for the remaining concession period.”
Noting that the current valuation is “significantly lower” than that adopted in 2016, Hyflux said that it intends to commission a further valuation to be undertaken by a different valuer for the purposes of finalising the 2018 full-year financial results.
“As the carrying value is a reflection of the current depressed market, in the event that the Singapore power market recovers to provide generation companies with sufficient spark spread margins, the valuation might then be revised,” Hyflux said.​

Banksters take their money and run:

However, if creditors consent to haircuts under its proposed restructuring scheme, Hyflux will return to a net asset position of S$1.1 billion, according to the group’s pro forma calculations. Mr Gerald said: “This means that the company may have positive value post restructuring.”
Post-restructuring, Hyflux’s pro-forma net tangible assets (NTA) per share would be 4.2 Singapore cents, based on an NTA of S$815.3 million distributed across an enlarged share base after an equity injection and various debt-for-equity swaps.
Indonesia’s Salim Group and Medco Group had earlier agreed to give Hyflux a S$400 million equity injection in exchange for a 60 per cent stake in the company post-restructuring. Effectively, Salim-Medco is buying into Hyflux at 3.4 Singapore cents a share.
If the Salim-Medco deal goes through, Hyflux’s debt securities holders and senior unsecured lenders will be cleaned off the balance sheet.​

PAP voters get shafted:

Retail perpetual and preference share holders will have their S$900 million in claims swapped for S$27 million in cash and S$69.2 million shares, assuming that the shares are valued at 3.4 cents apiece. That works out to a 10.7 per cent recovery rate on their principal.​

And there’s the retail shareholders.
Will they still vote for the PAP? Double confirm, ground not sweet for PAP

 

[Filloz]

“What they are offering to us is simply ridiculous,” said Christopher Ching, a construction industry consultant who bought S$250,000 of senior notes from the secondary market in late 2017. While he stands to recoup a higher percentage than the junior creditors, he’s prepared to fight with them for a better deal. “We might as well go down together.”

Dear Noteholders, our total claims are less than $278m, less than 8% of the total claims and we determine the whole outcome. SIAS has betrayed us and using the media to tell us to accept 75% loss.
https://www.hyflux.com/wp-content/uploads/2019/03/HL-List-of-Purported-claimants.pdf

Tonight, SIAS put up a show with Hyflux to generate the false impression that retail investors will get more money back. If they are bribed by such tiny increments, the more we should be united. https://www.businesstimes.com.sg/co...o-give-perp-pref-holders-more-recovery-upside

To think that we will also help retail investors by voting NO, now SIAS betrayed us and misled the retail investors to support. Let's just care for ourselves, we are too small (a group) to get any attention.

ATTENTION NOTEHOLDERS!!! - PLEASE READ AND SHARE. WE HAVE HOPE.

As long as all Hyflux noteholders vote "No" , we can make bankers beg us to support because we have the numbers in Senior Class. We call the shots, according to our representative lawyer. He said we have a high chance to recover 100% if we stay united. If we say no, nothing can proceed.

As long as we stay as a team and reject, everyone will pacify us and give us back 100% + penalty interests. I am serious. Our Akin Gump lawyers had briefed those who involved. We dominate the votes in unsecured class. Bankers can continue to enjoy their banking relationship with Hyflux, but we just want our 100% back. It is really possible. Don't fall to SIAS's and Hyflux's lies and accept the haircuts.

PLEASE PASS THE MESSAGE.

 

[Empower]

https://voiceofthemarkets.blogspot.com/2019/03/34000-singaporeans-set-to-lose-90-of.html

A new desalination and power plant in Singapore was projected to give 6% returns p.a. almost into perpetuity with highly risky junior debt totalling SGD 900m raised from 34,000 Singaporeans with the tacit support of the Govt.

There have been problems brewing with Hyflux for well over a year now. They have tried to sell a plant, have defaulted in their commitments to the Singapore water agency PUB who has even served a notice of take over.

Whatever be the case, if pressure builds too high, Govt may need to spend tax payer money to bail out 34,000 retail investors who are predominantly all Singaporeans. Next elections are in 2021 so Govt still has political capital to execute a bail out.

We cannot remember if Singapore has ever bailed out a private enterprise in the last 20-30 years but it is actually extremely rare for a utility company to get into such a terrible financial shape anywhere in the world. Within a span a few weeks, the disclosed debt and outstandings of this company have further risen by an additional S$ 800m.

For one, Hyflux has received proofs of claims worth S$3.5 billion from 73 parties – a sum that is much higher than the S$2.7 billion laid out in its explanatory statement dated Feb 22.

 

[Empower]

 

[Reddog]

A few years ago I resisted the Hyflux temptation of 6%. Instead suffered quietly with my 2.5% FD. Now can sleep well.

 

[rushifa666]

Thats moronic. Malaysia has NEVER needed water from us. Onky a moron can think we are supplying to the enetire peninsula. Sinkies are hopeless

 

[Huatable]

Guys, if our politicians, agencies, regulators are not corrupted and do their work in a responsible manner with the citizens in their hearts, there will be less poor people in Singapore.

I share something from a Chinese movie. The emperor said, "There are just too many beggars"
Stephen Chow replied, "If you are a good emperor, with peace and prosperity, who will want to be a beggar?".