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

[JustLikeThis]

Someone protesting at Xchange Mall.
https://sg.news.yahoo.com/man-found-wearing-sandwich-board-113204816.html

I salute this uncle. People slapped him and he voiced out.
Others?

 

[JohnTan]

Please highlight to your RC, I bet many grassroots leaders affected
"material faults and defects" in almost every Hyflux asset.

Some of my grassroots leaders and local residents were affected. I can only comfort them by telling them they invested with their eyes opened. Suing the government or Hyflux is not an option. Voting for the oppies in a moment of blind anger is not an option either. I'm glad that the affected investors agreed with me.

They've promised to remain calm and rational even as their savings have been wiped out. This was supposed to be a safe, blue chip investment.

 

[JustLikeThis]

Some of my grassroots leaders and local residents were affected.They've promised to remain calm and rational even as their savings have been wiped out. This was supposed to be a safe, blue chip investment.

It is a certainly good-lesson to the restless ones who refuse to keep their CPF money in OA account and invested in Hyflux.

Great that our kind government has a $8 billion safety net in place for those who remains calm and rational despite their savings being wiped out in such safe, blue chip investment.
https://www.todayonline.com/singapo...age-help-sporeans-born-1950s-healthcare-needs

 

[rushifa666]

Someone protesting at Xchange Mall.
https://sg.news.yahoo.com/man-found-wearing-sandwich-board-113204816.html

Kill your wife then superman, you cuck

 

[JustLikeThis]

After massive losses in retail platform Reebonz, Temasek and various backers injects US$226 into another fashion startup Zilingo.

https://www.scmp.com/tech/start-ups...es-us226-million-expand-fashion-site-inspired

 

[JustLikeThis]

Hyflux hired one of the worst IFA in town for the restructuring advisory; the same idiot behind con job listings such as China Hongxing, China Animal Health, China Sports, China XLX Fertilizer, Junma Tyre, etc.

http://investors.hyflux.com/newsroom/20190201_172711_600_CM2RU6CG5VVYPOX3.1.pdf

 

[Focus]

Hyflux investors will not die in vain if Singapore changes government.
In fact, if there is a new government, there's always a chance to re-consider helping these investors since the current one is indifferent.

VOTE FOR A NEW GOVERNMENT WHO WILL SAVE US

 

[JustLikeThis]

Good evening kind people of Singapore. Just back from drinks after attending tonight's meeting. it was too depressing. I just want to tell you three things:

1. Singaporeans are hopeless. The attendance was small tonight but many are contemplating the idea of letting of everything, in exchange of getting 5-10% back. It is ashamed that our citizens have no pride. Singaporeans deserve the shit that we got stuck in.

2. Nothing special tonight except SIAS telling us to go beg our government. Beg. And everyone is waiting for others to go and beg. Why not change the government? Easier right?

3. Ok, if you believe that all these while, I did not write any nonsense here, please don't trust SIAS anymore, don't trust the government, don't trust Hyflux. SIAS is just trying to brainwash us into accepting the >90% write-offs and be grateful for getting a few percent back. The whole objective is to keep Hyflux alive, not you. You stupid serfs understand?

Which is a greater evil?
Thieves or Cops who don't catch thieves?

 

[JustLikeThis]

Weekend Thoughts:
Will NEA be willing to issue a 3%-bonds to exchange all of Hyflux's debts to take over the whole company?

In Aug 2018, PUB issued bonds 3.01% bonds due 2032:

• While these bonds have a long-maturity date, they trade near 100-par because these are quasi-sovereign. Retail investors can offload them at fair prices when needed and Insurers / financial institutions need a lot of these investment-grade bonds in their portfolios
• NEA sets the rules for the utilities scene in Singapore; this is most transparent way of taking over Hyflux swiftly, without prejudice or need to argue over assets valuations with bankers and less-interpreted as a government bailout as existing creditors will still suffer some losses on the unpaid-interests and (new) lower-yields for the proposed NEA bonds.
• Local investors are badly wounded by the Offshore & Marine counters, Noble Group and Hyflux bonds in the past two years. To be a global bond-centre, Singapore needs a massive issue of investment-grade bonds to inject liquidity and attract global financial institutions.

Reference from UOB:
https://www.uobgroup.com/web-resources/uobgroup/pdf/research/MSN_180221.pdf

The Singapore Budget 2018 statement lists 3 specific projects that may be funded by Infrastructure Bonds are, i.e. the National Environment Agency (NEA) will look at borrowing to finance the upcoming Integrated Waste Management Facility, the Land Transport Authority (LTA) will also look at borrowing for upcoming projects such as the KL-Singapore High Speed Rail and the JBSingapore Rapid Transit System Link and Changi Airport Group (CAG) will look at borrowing for construction of Changi Airport Terminal 5 (T5). Bear in mind that the above three highlighted projects is by no means exhaustive. Furthermore, projects to be funded via bonds need not just be of “marquee” undertaking. Thus even upgrades to existing infrastructure may also be included and thereby ensuring a continuous supply of Infrastructure Bonds.

Government cannot just rely on SGS Bonds. pursuant to the Government Securities Act and Local Treasury Bills Act, SGS issuance proceeds are paid into a Government Securities Fund, and outward payments from this fund are generally limited to the paying of interest and repayment of principal associated with SGS issuance only. In other words, the existing laws and regulations do not allow the government to spend the proceeds nor returns from SGS issuance. As such, an alternative avenue of funding has been identified and the proposal to issue Infrastructure Bonds instead of issuing more Singapore Government Bonds will increase the variety of bonds in the local market as well as increasing the transparency and accountability of such infrastructure projects.

Investor confidence on quasi-sovereign bonds are high and there should not be any uncertainty surrounding the Singapore government’s guarantee since Singapore’s has AAA credit rating accorded by various international credit ratings agencies. Specifically, there are now less than 10 countries globally that have long term AAA credit rating across all three major rating agencies Moody’s, S&P and Fitch.

Why think about Thailand, Indonesia, Vietnam? Help ourselves first
Singapore can use infrastructure bonds to save Hyflux. Look here hahaha
https://www.businesstimes.com.sg/go...ructure-players-look-for-another-budget-boost

 

[hofmann]

Good evening kind people of Singapore. Just back from drinks after attending tonight's meeting. it was too depressing. I just want to tell you three things:

1. Singaporeans are hopeless. The attendance was small tonight but many are contemplating the idea of letting of everything, in exchange of getting 5-10% back. It is ashamed that our citizens have no pride. Singaporeans deserve the shit that we got stuck in.

2. Nothing special tonight except SIAS telling us to go beg our government. Beg. And everyone is waiting for others to go and beg. Why not change the government? Easier right?

3. Ok, if you believe that all these while, I did not write any nonsense here, please don't trust SIAS anymore, don't trust the government, don't trust Hyflux. SIAS is just trying to brainwash us into accepting the >90% write-offs and be grateful for getting a few percent back. The whole objective is to keep Hyflux alive, not you. You stupid serfs understand?

Which is a greater evil?
Thieves or Cops who don't catch thieves?

Easy for me to say since I'm not vested in this, but u all need to show iron balls and go for liquidation.

That is the only card left to play.

Good luck gentlemen and gentlewomen.

 

[JustLikeThis]

Easy for me to say since I'm not vested in this, but u all need to show iron balls and go for liquidation.

That is the only card left to play.

Good luck gentlemen and gentlewomen.

Yes, investors have two votes.
Vote No for the senseless robbery.
Vote for a new government since the existing don't help.

 

[JohnTan]

3. Ok, if you believe that all these while, I did not write any nonsense here, please don't trust SIAS anymore, don't trust the government, don't trust Hyflux. SIAS is just trying to brainwash us into accepting the >90% write-offs and be grateful for getting a few percent back. The whole objective is to keep Hyflux alive, not you. You stupid serfs understand?

Which is a greater evil?
Thieves or Cops who don't catch thieves?

Hyflux is a strategic national asset that supplies Singapore with treated water. Singapore needs water more than it needs useless serfs. We can always replace sinkies, we couldn't replace Hyflux.

Sinkies need to look at the big picture instead of being myopic and fight over pennies. Hyflux must be saved!

 

[Soul]

Someone protesting at Xchange Mall.
https://sg.news.yahoo.com/man-found-wearing-sandwich-board-113204816.html

UOB spokesman said: "We are aware of the incident and met with the gentleman to understand his concerns.
"Please be assured the Bank deals with every complaint promptly and fairly."
https://stomp.straitstimes.com/sing...ter-about-his-savings-allegedly-gone-with-the

 

[gummybear]

Good evening kind people of Singapore. Just back from drinks after attending tonight's meeting. it was too depressing. I just want to tell you three things:

1. Singaporeans are hopeless. The attendance was small tonight but many are contemplating the idea of letting of everything, in exchange of getting 5-10% back. It is ashamed that our citizens have no pride. Singaporeans deserve the shit that we got stuck in.

2. Nothing special tonight except SIAS telling us to go beg our government. Beg. And everyone is waiting for others to go and beg. Why not change the government? Easier right?

3. Ok, if you believe that all these while, I did not write any nonsense here, please don't trust SIAS anymore, don't trust the government, don't trust Hyflux. SIAS is just trying to brainwash us into accepting the >90% write-offs and be grateful for getting a few percent back. The whole objective is to keep Hyflux alive, not you. You stupid serfs understand?

Which is a greater evil?
Thieves or Cops who don't catch thieves?

Want to die, also die with OL and Hyflux.

 

[hofmann]

Hyflux is a strategic national asset that supplies Singapore with treated water. Singapore needs water more than it needs useless serfs. We can always replace sinkies, we couldn't replace Hyflux.

Sinkies need to look at the big picture instead of being myopic and fight over pennies. Hyflux must be saved!

Thank you John, for confirming that liquidation is the outcome feared by management.

This is indeed empowering for the retail investors.

 

[JustLikeThis]

Want to die, also die with OL and Hyflux.

This is good write-up of Hyflux's situation. The author is very qualified to lead the affected Hyflux investors.
For years, he spent a lot of time educating the public about bonds.
http://www.hnworth.com/article/2019/02/11/time-to-marie-kondo-your-portfolios-and-a-look-at-hyflux

Behind Every Default Was Once a Darling
As we said years back, Behind Every Default was Once a Darling, and there is really no single point to lay the finger of blame upon, be it the company, the bank, the media, the buyer or the regulator.



When Hyflux issued their second Hyflux 6% retail perp in 2016, mini-alarm bells started to toll even though the 5.75% non-retail perpetual was redeemed a few months later.

The operating model seemed slightly flawed even as early back in 2014 when we wrote about the 5.75% redeemed bond, that “Some say they are paying up because of management problems with their board of directors quitting en masse, I will not speculate on matters of their corporate governance…..Looking back in 2013, we note that there was a consent solicitation exercise for outstanding Hyflux bonds. This was to amend a certain covenant that would allow Hyflux to include “intangible assets” into their “Consolidated Tangible Net Worth” ratio which they had apparently busted (unverified as the exercise was a private exercise that I was not privy to).
I can imagine (note that I am using the word “imagine”) that they are building water plants for foreign governments which, of course, they would not be allowed to own for it is a strategic asset. The foreign governments do not pay for it and Hyflux is, instead, allowed to operate the plants for an extended concessionary period to recover their costs. Thus, classified as “intangible assets”.

As such, we note that their “intangible assets” on their balance sheet has swelled from SGD 226 mio in 2012 to SGD 747 mio in Sep 2013. This will be accompanied by heavy amortisation/depreciation over the years as they realise the income from their operation of the plants.”

For, we certainly did not have much good to say back then.

Then came the 2016 SGD perpetual bond which was sold to retail buyers and we had to bite our lips because it was not something we would question the relevant authorities over because Singapore had a due diligence framework in place for retail bond issues.

Most Hyflux investors will be wiped out soon, in 2019, according to this video that is distributed and some of us cannot help but feel a little of their pain, especially those astute investors who thought they had foresight in buying Hyflux senior debt, thinking that is was safe enough for the low yield (4.2%!) it commanded in 2012, without worrying that Hyflux went and borrowed even more money, subsequently, that was secured on Tuaspring and even more subordinated money in their S$500 million dollar retail bond issue in 2016.

And now, nobody’s getting much back, senior or junior bondholders with the senior chaps looking like they will be drawing the shortest straw against the retail (junior) bondholders as an outcome.

The Blame Game… Again…
Take a look at this chap, who was caught on tape wandering around Raffles Place.

He lost around 90% of his initial investment which could only be the result of a bond default and he was upset enough to wear a placard around town to highlight his woes and to elicit some public sympathy.

And poor Mr Teo would not be too comforted by some of the responses we got.
“Means he shud sell his $1.5m home”
“Hyflux perp will have more of such retirees cases.”
“they seem to think 250k will last forever… likely dementia setting in”
“He is not telling the whole story.”
“Time to go back to work I guess”
“Maybe not be so greedy next time?”
“Number sound so fake”
“Not so savvy then!”
Then, we had a few “Oh dear” and the usual commiserations.

It was mainly because it was too hard and scary to Marie Kondo something like Hyflux.

1. Water is a national asset. Our current needs are met with 30% of desalination efforts and we would assume and the largest desalination plant in Singapore, Tuaspring, would not be allowed to go bust.

2. And the retail buyer is involved… which means there is some form of higher-level due diligence work by the regulators and authorities according to MAS = SAFE!
Does Hyflux suggest a new meaning of the time frame for SAFE?

3. The Olam precedent back in 2012, somehow suggests that the government investment arms, Temasek and GIC, would not hesitate to interfere in public bailouts. And the Hyflux CEO is plastered in almost about every other Singapore water photo out there.

4. 2019 elections?





For one, we would have no clue or guidance or about anything that any legitimate media outlet would dare to put on print and we can clean forget about trusting our banks to tell us anything because it would represent a massive conflict of interest on their parts, if they had commercial dealings with the company on the verge of default, years after they had sold the corporate bonds to customers.

So what if you have a quarter million in exposure to a bond we sold you 2 years ago? The fiduciary duty has long passed and there is no more accountability.

It is also true, no one would dare to blaspheme regarding Hyflux, with bankers included, because there was just so much implicit government backing for the company, not to mention the accolades they have won over the years.

Singapore’s TODAY papers would be one of the first to have dared say something bad with their "Hyflux’s fall from grace: What went wrong" piece written mid-2018, with the audacity to suggest that the company’s risk committee only met once in 2017 and there was a possibility that the firm did not have the “right kind of directors”, err, 4 years after we noted, in 2014 with less public liability, that “their board of directors were quitting en-masse”.

Now, which self-respecting news media would have dared to suggest a blasphemous (towards the State) thing as that?

Which self-respecting distressed bond fund would have dared to make a bid, with the banks largely absent, for a distressed SGD dollar bond when they would have little chance of a decent recourse?

So much for the 2018 Singapore Insolvency Conference last July, global lawyers are still not buying into “the hype behind the Singapore law” and we would not blame them the least, given the lack of success in Singapore Courts for the investor.

For sarcasm sake’s, name us any little investor or hedge fund who has won in Singapore, against the big bad defaulting wolves driving Rolls Royce’s?
Better off trying their luck elsewhere.


A Final Word
And so it would appear that 34,000 families (referring to the unverified video above) and many other investors are about to lose some of their wealth on Hyflux which has not officially defaulted yet, having paid their last coupon on their senior bonds in September last year.

Yet, oh dear, for the 34,000 families affected by Hyflux, we hope you managed to parachute your way to a cheaper and happier Chinese New Year and we pray that Temasek or GIC will change their minds

 

[JustLikeThis]

Thank you John, for confirming that liquidation is the outcome feared by management.
This is indeed empowering for the retail investors.

A Final Word Yet, oh dear, for the 34,000 families affected by Hyflux, we hope you managed to parachute your way to a cheaper and happier Chinese New Year and we pray that Temasek or GIC will change their minds

Yes, say goodbye. Even Ed Chan also think that only government can solve the problem.

Hope the affected investors open their eyes big and at least know who ruined their lives.
Lawyers and auditors are not going to help you.
Tell your story to people around you, ask your friends and relatives to amplify your voice in the next election.
Don't give up, get a new government to help.

 

[FuckOttoke]

Ha Ha !

70% sinkies got raped in their ass !

 

[hofmann]

Yes, say goodbye. Even Ed Chan also think that only government can solve the problem.

Hope the affected investors open their eyes big and at least know who ruined their lives.
Lawyers and auditors are not going to help you.
Tell your story to people around you, ask your friends and relatives to amplify your voice in the next election.
Don't give up, get a new government to help.

you all have to help yourself first by voting for liquidation.

 

[gummybear]

Yes, say goodbye. Even Ed Chan also think that only government can solve the problem.

Hope the affected investors open their eyes big and at least know who ruined their lives.
Lawyers and auditors are not going to help you.
Tell your story to people around you, ask your friends and relatives to amplify your voice in the next election.
Don't give up, get a new government to help.

This song brings bad luck
See the male singer already died.