Crisis-hit Hyflux’s Debt Plan Faces S$40 Million Fee Hurdle

Having just signed a deal with Middle Eastern suitor Utico FZC, crisis-hit Hyflux Ltd. is facing a fresh challenge -- how to allocate S$40 million ($29 million) of fees among restructuring advisers, Bloomberg News reported. The Singapore water treatment company needs to get its advisers to agree on how to split the pot, or Utico has the right to walk away, according to the deal terms. The problem was discussed in a court hearing in Singapore on Friday. Lawyers and consultants have been working for more than 1 1/2 years on Hyflux, the nation’s most high-profile debt restructuring. An expansion into the power-supply business went awry, leaving the company with billions of dollars in liabilities -- including to some 34,000 retail bondholders -- that it couldn’t repay. Read more

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