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

[JustLikeThis]

Hyflux received a cheque without signature to extend debt moratorium by 3 months

Banks are filing for judicial management to remove Olivia.

 

[JustLikeThis]

 

[JustLikeThis]

 

[JustLikeThis]

Extended for another month but but but
by then Tuaspring is confiscated by PUB right? Then how to settle accounts with Maybank?

 

[Revenger]

Huat Ah !

Great Deal for Hyfluxers , probably you can get 1% cash and 5% shares !

LOL , reject S$530 million from Salim , but now begging for S$400 million only .

 

[Revenger]

Oh wait , you got conned by Olivia again !

https://www.upcounsel.com/non-binding-contract

"A non binding contract is an agreement in which the parties are not legally obligated to carry out its terms. "

 

[JustLikeThis]

SINGAPORE (Apr 25): Hyflux International, the debt-laden water company facing potential liquidation, has been granted a one-month extension of its debt moratorium to May 24 although it had asked for an extra three months. Explaining his decision to provide a shorter moratorium, the judge said that the moratorium under section 211B was meant to give a company “breathing space” and not for it to “continue indefinitely”, according to the reports.

https://www.theedgesingapore.com/hy...n-debt-moratorium-instead-new-deadline-may-24

 

[eatshitndie]

keep asking for sextension. death by a thousand cuts.

 

[JustLikeThis]

Good morning,

SIAS made a press release to condemn olivia and details of yesterday's court filings are out. However, they are not in the morning papers due to the printing cut-off time.

1. SIAS said "ABOUT TIME OLIVIA LUM STEPS DOWN AND HYFLUX NEEDS TO BUILD TRUST"
https://sias.org.sg/investment_thou...m-steps-down-and-hyflux-needs-to-build-trust/
Apparently, David Gerald was misled about the new proposal which was actually not "credible", after court session yesterday. Earlier, SIAS described the plan as "credible" . https://www.straitstimes.com/busine...he-table-for-hyflux-to-avoid-liquidation-sias

David Gerald has again called for Hyflux CEO Olivia Lum to step down.

"We have called on Olivia Lum long ago to step down because the company failed under her leadership, and for stakeholders to have trust, there must be a change in the chairmanship, management. The same people trying to do new things cast doubts in the minds of investors," Mr Gerald said.

"On the interim basis, there are people on the board who can step in and provide new leadership, and in the meantime, they need to look for someone with expertise in the water business. Someone who knows the business, can lead the company and steer the company to success."

But Mr Gerald said stakeholders are concerned about the escalating professional fees and advisers' expenses Hyflux has to pay.
Echoing Mr Gerald's view was NUS Business School Associate Professor Lawrence Loh.

"The cash burn is obviously a key concern but if you don't put in anything now, you might be losing much more," said Assoc Prof Loh.​

Quoted from: https://www.channelnewsasia.com/new...intent-for-possible-s-400m-injection-11477756




2. What is not "credible" about the new proposal?
https://www.hyflux.com/wp-content/uploads/2019/04/20190423-3rd-Affidavit-of-Lum-Ooi-Lin.pdf
I refer to the above affidavit. If I may simplify things, basically it suggests that EPC and related businesses that are worth something or generating cashflows will be transferred to "New Hyflux". From the very beginning of this thread, we have our suspicion that Hyflux is just following Noble's footstep.

New Hyflux will be shared by (old)Hyflux and new (majority) investor. Assuming Old Hyflux owns 20% of New Hyflux and makes $50m annually. $10m will go to Old Hyflux, which will be shared by $900m of PnPs, unsecured debts, legal debts, and Old Hyflux management. (less than 1% return for PnP in the above assumption)

I have nothing against the new investors but this structure is also designed for the New Hyflux to be immune to legal debts and PnPs removed from the equation. Let me put it this way, after restructuring, Old Hyflux is likely to go bust due to the ever-increasing amount of lawsuits from overseas. Therefore, there are reasonable grounds to believe that the 20% (assumed) stake in New Hyflux will eventually belong to those who sues Hyflux. l can clarify further if required.

Basically, they can start fresh with New Hyflux; fearless of the old lawsuits and with minimal approval from PnPs. PnPs perpetually get nothing or a negligible return annually until Old Hyflux is bankrupted by overseas legal claims.

I can understand David Gerald's anger because there is nothing "credible" about it, except creative financial engineering to strike PnP off the books while Olivia continues to pursue her wet (water) dreams.




3. Pay cut by Olivia
The $1 salary proposed by Olivia is supposed to be an ethical gesture but Olivia also leaked her tail. Her wildest wet dreams will be in New Hyflux and her new investor. The $1 salary is applicable till restructuring is over, not until the PnPs are repaid. She will resume drawing fat pays from Old Hyflux and new Hyflux while PnP get smoked.
https://www.businesstimes.com.sg/co...l-take-s1-salary-until-hyflux-is-restructured



Why this Olivia always think we are stupid who are they trying to fool

 

[JustLikeThis]

keep asking for sextension. death by a thousand cuts.

If foreign investors are willing to inject $400m to Hyflux, why can't PAP do the same? 53000 investors not worth $400m? Just $7500 each and less if dependents are included.

 

[Empower]

If foreign investors are willing to inject $400m to Hyflux, why can't PAP do the same? 53000 investors not worth $400m? Just $7500 each and less if dependents are included.

Yes, actually Hyflux collapse has ruined the local SGD bond market
After Hyflux's Fall, Singapore Debt Buyers Are Scrutinizing These Firms https://www.bloomberg.com/news/arti...-singapore-debt-buyers-scrutinize-these-firms

The collapse of Singapore’s water treatment firm Hyflux Ltd. has increased investor scrutiny over other debt-laden companies that have sold bonds in the local currency.

More defaults could occur as earnings may worsen in a sputtering economy and riskier borrowers that creditors lent to amid low interest rates now struggle, according to S&P Global Ratings. Growth in Singapore’s export-reliant economy has been cooling in the past year and is projected to slow further.

Companies in danger:-
CWT
Vibrant Group
Oxley Holdings
NOL
Lippo Malls Indonesia Retail Trust

 

[Focus]

 

[Focus]

WAKE UP PEOPLE!

 

[xebay11]

Bring it international for the world's attention.

 

[JustLikeThis]

Bring it international for the world's attention.

Endgame for Hyflux needs to be played by new characters

Published April 27, 2019
By Mak Yuen Teen

Directors should not jump ship at the first sign of trouble, but I believe that a new group of directors should have been in place to guide Hyflux through the restructuring process, with the existing directors making themselves available to aid the new directors if necessary.

Not only are the existing directors responsible for the predicament the firm faces – and I believe this has a lot to do with the composition of the board, including the knowledge, experience, tenure, commitments and relationships among certain directors – they do not appear to have the strong financial management and restructuring background necessary to oversee the restructuring process. Without such background, they are likely to be totally dependent on professional advisers and limited in their ability to make informed judgement about the advice they are receiving. From my experience and discussions with others familiar with boards, directors often tend to take the views of auditors, legal advisers and other professional advisers as gospel truth without questioning such advice, which leads me to wonder what value many directors actually bring to boards. I do not agree with the view that directors are not expected to question professional advice they receive because those advice may be rendered to legitimise a certain position that has already been taken.

In Hyflux’s case, there is already concern about professional fees stacking up and further reducing the already meagre potential distributions to different stakeholders. There is a risk of this getting totally out of control, if not already so.

Under the circumstances, I believe that new directors who are appointed should have significant experience and a good track record in financial management and restructuring (track record is important as there are directors who call themselves turnaround experts but whose companies’ fortunes often get worse after they join).

http://governanceforstakeholders.com/2019/04/27/endgame-for-hyflux-needs-to-be-played-by-new-characters

 

[frontier]

Good points - United MTN Holders will call the shots!
BONDHOLDERS TAKE NOTE! Our perseverance is paying off.

hi, I am mtm bondholder. I dropped you pm. Can you drop me to the mtm bond discussion group.

 

[frontier]

Bring it international for the world's attention.

Like the title of this thread, Noble was tip of an ice-berg, ACRA and CAD did not learn from Noble's experience, they had so much time to arrest Olivia and Board of Directors but regulators just refusing to act.

Dear Singaporeans, I really want to say there will be more to come.
https://www.businesstimes.com.sg/co...pore-debt-buyers-are-scrutinising-other-firms

I lost $500K in Hyflux 2019 bonds. This is more than 15 years of savings. I told myself this is a small price to pay if it leads to a change of government in next General Elections.

 

[Filloz]

hi, I am mtm bondholder. I dropped you pm. Can you drop me to the mtm bond discussion group.

hi, my MTM group stopped adding new whatsapp members for a month. By now, we have decided on our agendas and objectives, split the legal fees among ourselves. Please understand that MTN group have agreed on not accepting new members because some newer members were fakes to monitor our discussions or gave nonsense suggestions.

If you are real, I will keep you posted here in private.

 

[JustLikeThis]

Combing through Hyflux's 'no haircut' plan
https://www.businesstimes.com.sg/companies-markets/combing-through-hyfluxs-no-haircut-plan

All it has now is a non-binding letter of intent from an unnamed party, but none of the hoped-for S$400m cash injection will go to perp and pref share holders.

Some observers don't believe that liquidation can destroy any more value since Hyflux is already "way past default" after filing for bankruptcy protection last May. The company will need to be more upfront about the default clauses in its various offtake contracts and whether they have been breached.

Right now, apart from impatient creditors, all that Hyflux has to show is a non-binding letter of intent from a mystery developer and owner of water and power utilities in the Middle East. Hyflux is trying to convince this unidentified party to give it a S$400 million cash injection. But none of this money will go to perp and pref share holders. Hyflux no longer intends to settle upfront any of the debts owed to junior creditors.

 

[Huatable]

Good morning,

SIAS made a press release to condemn olivia and details of yesterday's court filings are out. However, they are not in the morning papers due to the printing cut-off time.

1. SIAS said "ABOUT TIME OLIVIA LUM STEPS DOWN AND HYFLUX NEEDS TO BUILD TRUST"
https://sias.org.sg/investment_thou...m-steps-down-and-hyflux-needs-to-build-trust/
Apparently, David Gerald was misled about the new proposal which was actually not "credible", after court session yesterday. Earlier, SIAS described the plan as "credible" . https://www.straitstimes.com/busine...he-table-for-hyflux-to-avoid-liquidation-sias

David Gerald has again called for Hyflux CEO Olivia Lum to step down.

"We have called on Olivia Lum long ago to step down because the company failed under her leadership, and for stakeholders to have trust, there must be a change in the chairmanship, management. The same people trying to do new things cast doubts in the minds of investors," Mr Gerald said.

"On the interim basis, there are people on the board who can step in and provide new leadership, and in the meantime, they need to look for someone with expertise in the water business. Someone who knows the business, can lead the company and steer the company to success."

But Mr Gerald said stakeholders are concerned about the escalating professional fees and advisers' expenses Hyflux has to pay.
Echoing Mr Gerald's view was NUS Business School Associate Professor Lawrence Loh.

"The cash burn is obviously a key concern but if you don't put in anything now, you might be losing much more," said Assoc Prof Loh.​

Quoted from: https://www.channelnewsasia.com/new...intent-for-possible-s-400m-injection-11477756




2. What is not "credible" about the new proposal?
https://www.hyflux.com/wp-content/uploads/2019/04/20190423-3rd-Affidavit-of-Lum-Ooi-Lin.pdf
I refer to the above affidavit. If I may simplify things, basically it suggests that EPC and related businesses that are worth something or generating cashflows will be transferred to "New Hyflux". From the very beginning of this thread, we have our suspicion that Hyflux is just following Noble's footstep.

New Hyflux will be shared by (old)Hyflux and new (majority) investor. Assuming Old Hyflux owns 20% of New Hyflux and makes $50m annually. $10m will go to Old Hyflux, which will be shared by $900m of PnPs, unsecured debts, legal debts, and Old Hyflux management. (less than 1% return for PnP in the above assumption)

I have nothing against the new investors but this structure is also designed for the New Hyflux to be immune to legal debts and PnPs removed from the equation. Let me put it this way, after restructuring, Old Hyflux is likely to go bust due to the ever-increasing amount of lawsuits from overseas. Therefore, there are reasonable grounds to believe that the 20% (assumed) stake in New Hyflux will eventually belong to those who sues Hyflux. l can clarify further if required.

Basically, they can start fresh with New Hyflux; fearless of the old lawsuits and with minimal approval from PnPs. PnPs perpetually get nothing or a negligible return annually until Old Hyflux is bankrupted by overseas legal claims.

I can understand David Gerald's anger because there is nothing "credible" about it, except creative financial engineering to strike PnP off the books while Olivia continues to pursue her wet (water) dreams.




3. Pay cut by Olivia
The $1 salary proposed by Olivia is supposed to be an ethical gesture but Olivia also leaked her tail. Her wildest wet dreams will be in New Hyflux and her new investor. The $1 salary is applicable till restructuring is over, not until the PnPs are repaid. She will resume drawing fat pays from Old Hyflux and new Hyflux while PnP get smoked.
https://www.businesstimes.com.sg/co...l-take-s1-salary-until-hyflux-is-restructured



Why this Olivia always think we are stupid who are they trying to fool

To me, the $400m is a bridging loan for Old Hyflux to refinance and transfer healthy assets and businesses to the New Hyflux's ownership and PnP left high and dry in an shell company facing the legal claims.

It is like an insolvent husband, with his properties risk being confiscated by creditors. He decided to get divorced and using an bridging loan to transfer what ever properties with rental income (sufficient to cover loan interests) to the wife. Thereafter, the husband is then filed bankrupted like PnP.

That is assuming that the wife still sleeps with the husband, but will olivia sleep with you?