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

[JustLikeThis]

3. Seeing that Perpetual and Preference investors is not going to have an uniform payout within their group (max $1500 or up to 50% for those with max. $3000 vested), at least two banks are trying to convince the UWG group within the unsecured senior class that bankers will get to the keep excess from unclaimed contingency liabilities, in exchange for their support. If this goes through, it is unfair to MTN. Restructuring advisors also seeking a share if they are can reduce contingency liabilities (which appeared out of thin air in the first place)

You are correct.

Just out: Unsecured bankers have their own thinking, according to Debtwire.

https://www.businesstimes.com.sg/co...lux-lenders-oppose-ntan-adviser-fees-debtwire

 

[Revenger]

THE ONLY WINNER IS OLIVIA .

SO MANY 70% SINKIES ARE SCREWED .

 

[Dr Christopher Cheok C S]

Shareholders get 5% back after Utico's injection. They get as much or more than the PnPs.

 

[JustLikeThis]

THE ONLY WINNER IS OLIVIA .

SO MANY 70% SINKIES ARE SCREWED .

According to an email circulated, Olivia watching her ass well by paying nTan $1m upfront and a few hundred thousand every month, invoiced and payable in advance. In addition, Olivia gives nTan 7.5% commission for every dollar of debt reduced and 1.5% for every dollar of debt restructured. Use company money to kill the retail investors.

Accumulated interests + principal for PnP = $1billion
95% loss for PnPs = $950 written off
7.5% of $950m = $71m
nTan CONmission = $71m + regular monthly fees + debt reduction/restructured with senior creditors?

Stupid Olivia and her CFO never hire me. For such money, I will give her a fat kickback.

https://www.bloomberg.com/news/arti...s-debt-plan-faces-a-s-40-million-fee-obstacle

 

[Dr Christopher Cheok C S]

The way i understand is $1500 for Option 1
or between $1500 and 5.5% paid 2 years later for Option 2

bully until like that, I am sure PAP will pay the political price if they don't intervene.

 

[Revenger]

The way i understand is $1500 for Option 1
or between $1500 and 5.5% paid 2 years later for Option 2

bully until like that, I am sure PAP will pay the political price if they don't intervene.

THEY WILL GET ALJUNIED GRC BACK , THAT WILL TEACH THEM A LESSON !

 

[mojito]

What did I say? What did I say? These fellas just stalling for time, more into their pockets means less into yours!

 

[krafty]

the pple who buy into hyflux are quite an unlucky bunch. seldom see big local company fail but such is hyflux.

 

[JustLikeThis]

You are correct.

Just out: Unsecured bankers have their own thinking, according to Debtwire.

https://www.businesstimes.com.sg/co...lux-lenders-oppose-ntan-adviser-fees-debtwire

Unsecured bankers get similar returns in JM, while Utico repays 50% of the promised sum 18 months later.
Two Birds in hand is definitely better than Two in bush.

 

[JustLikeThis]

Noble Holdings extends deadline for share entitlement
Shareholders will be given time to verify their status.
Supply chain management company Noble Group Holdings extends deadline to shareholders until March 2020, in which shareholders must register with Lucid Issuer to protect their entitlement to receive shares in the former Noble company, announced the company.
https://sbr.com.sg/utilities/news/noble-holdings-extends-deadline-share-entitlement

 

[JustLikeThis]

In a recent article on Hyflux written by the first author, it was mentioned that BDO Raffles was providing IA services to the company at least from FY2005 to FY2008, while its then partner, Lee Joo Hai, was chairing the company’s AC. Since the AC is supposed to oversee IA, there was clearly a self-review threat.

Hyflux subsequently moved its IA function in-house. However, during the period from May 2013 to December 2015 when its non-executive director Gary Kee was re-designated to executive director, he had responsibilities for Corporate Finance, Information Technology, IA and Corporate Marketing functions. This may raise doubts about the independence of the IA function during that period, given that he was overseeing various support functions that IA would be expected to review as part of its work. Even if he did not hold the IA and other roles concurrently, these multiple roles were held over a relatively short period of time. A LinkedIn search indicates that a Head of IA was appointed in May 2015.

https://governanceforstakeholders.com/author/mak-yuen-teen/

 

[frontier]

My sources told me that Olivia kept going to jiakhong, not for meeting prospects but because she don't want to recognized in Singapore.

 

[Filloz]

My sources told me that Olivia kept going to jiakhong, not for meeting prospects but because she don't want to recognized in Singapore.

I am not surprised. I also heard that she is usually away. CFO and her probably having good year-end vacation. Judge should have gave only 1-mth extension and make them work during this period. She probably transfered some assets overseas and Hyfluxshop is rebranded as ELO and doing well.

Meanwhile, Utico is unlikely to get complete acceptance by banks, many still doubt Utico's ability to honor payments.

 

[JustLikeThis]

A Singaporean emerged to buy senior debts of Hyflux at a discount.

Aqua Munda Pte Ltd was incorporated in Singapore on Dec 17 this year, listing a registered office address on the 27th floor of Ocean Financial Centre and its main business as the manufacture of water treatment, waste treatment, and oilfield chemicals. With a share capital of $1 million, the company’s sole owner is Bambang Sugeng bin Kajairi, a Singapore citizen, with a residential address in Opera Estate.

New investor offers to buy out $1.8b of Hyflux's debts to noteholders, unsecured creditors
https://www.straitstimes.com/busine...o-buy-out-18b-of-hyfluxs-debts-to-noteholders

 

[JustLikeThis]

Bambang Sugeng Kajairi is the Director and shareholder of Credenze Inc. Bambang has had more than 29 years experience in the private and public sectors both internationally and in Singapore. He was previously the CEO of Reem Investments PJSC, a private investment vehicle chaired by HH Sheikh Tahnoon bin Zayed Al Nahyan in Abu Dhabi. He also had stints as an MD in CapitaLand Ltd and Director of HPL (UK) Ltd. Bambang was a former diplomat with the Singapore Foreign Ministry as Deputy Director of the Americas.

Ref:
https://credenze.asia/
http://gifc.org.sg/mr-bambang-sugeng-joins-the-clubs-management-committee/

 

[JustLikeThis]

This gentleman has roots in Middle East and local authorities.
Is he engineering a bailout on behalf of our local government or acting in concert for Utico*?

*Earlier Utico attempted to split PNP votes by offering $1500 per pax to PNP investors with minor exposure to buy headcounts. @Maybe is our MTN investor and shared strategies that use MTN's headcounts to destroy Utico's plans. In the same light, could Aqua Munda be a proxy to buy headcounts from MTN investors (who have smaller exposures than bankers), by offering a similar deal like PNP?

 

[Filloz]

This gentleman has roots in Middle East and local authorities.
Is he engineering a bailout on behalf of our local government or acting in concert for Utico*?

*Earlier Utico attempted to split PNP votes by offering $1500 per pax to PNP investors with minor exposure to buy headcounts. @Maybe is our MTN investor and shared strategies that use MTN's headcounts to destroy Utico's plans. In the same light, could Aqua Munda be a proxy to buy headcounts from MTN investors (who have smaller exposures than bankers), by offering a similar deal like PNP?

He is clearly after Senior Creditors so perpetuals and preference shares are not in the equation. Certainly, MTN have greater seniority and now Senior Creditor Class needs our consensus. It is common sense that he got to offer MTN more than Utico's plan for bankers. I am reserving my judgement until the details are out a week later.

 

[JustLikeThis]

Likely Middle-East linked

Important Information about Aqua Munda:
https://www.thestar.com.my/business...firm-makes-surprise-bid-for-us13b-hyflux-debt

- The firm is backed by a well-funded investor group from the Gulf region, according to people familiar with the matter.

- The debt purchase offer includes contingent liabilities of about S$750 million. While it doesn’t include Hyflux’s perpetual and preference shareholders, if the offer is successful, the next step is likely to be a restructuring exercise that includes them, people familiar with the matter said.

- OCBC credit research team: Tender offer likely selective, target at specific group.

 

[frontier]

Many VIPs in Singapore are also MTN holder.
It could be the best deal for MTN.

 

[Filloz]

Many VIPs in Singapore are also MTN holder.
It could be the best deal for MTN.

Currently, I estimate that we have 5 different legal rep groups for various notesholders.

I talked to a few notesholders about Aqua Munda, representing just two legal camps. So far, both law firms will not issue any advice until the details are out. Basically, these folks agree with me that it is likely that Utico wants to buy our MTN headcounts by offering a higher payout than the bankers. Just like the way, they offer up to $1500 for retail investors with max. $3000 exposure. (up to 50% for small investors)

My legal said (off the records) that his counterparts representing bankers are not supporting Utico because Utico promised X amount but stretches the payment over a period of time. Utico's proposed payout is not higher than JM.

Assuming bankers and us get about 23% baseline, and if we swallow the $50 million from perpetuals and preference, we can get another 18% more for $265m worth MTN notes. If Aqua Munda throws in accrued interests and penalties, we are likely to get almost 50% for those with 1 lot exposure ($250,000) which is similar to perpetual and preferences. So, let's assume flat rate $120,000 to $125,000 compensation for each individual MTN holder (similar as perpetual and preference).

Moreover, Aqua Munda need not buy all our MTN votes to turn the tables, so the MTN holders with bigger exposures will get killed and suffer like those retail investors with large exposures in perpetuals and preference. As this is an off-marketing transaction, don't be surprise that Aqua Munda will pay a higher percentage for those with 1 lot or less for those with more (my speculation)

illustration -
$250,000 Exposure gets $125,000 = 50%
$500,000 Exposure gets $160,000 = 32%
$750,000 Exposure gets $180,000 = 24%

Our MTN holders have been very united and won the biased SMI voting without a fight. But now, I speculate that for the first time, Utico will be able to split our camp.