Hyflux’s unsecured creditors likely to receive ‘small dividend’, liquidators say

SINGAPORE (THE BUSINESS TIMES) – The liquidators for water-treatment company Hyflux said on Thursday (Nov 18) that unsecured creditors, including medium-term noteholders, are likely to receive a “small dividend” following the sale of assets.

However, Hyflux shareholders and holders of the perpetual securities and preference shares (P&Ps) are unlikely to recover any part of their investments.

“The P&P claims are subordinated to the claims of ordinary unsecured creditors and are unlikely to be eligible for a dividend,” the liquidators said.

There are about 34,000 P&P holders who sank in a combined $900 million.

The liquidators said they have received total proofs of debt amounting to around $1.5 billion, but the realisations from the asset sales are unlikely to exceed $100 million.

The size and timing of any dividend to unsecured creditors will be assessed after the sale of all assets is completed. However, the liquidators said that it is impossible to know when this will be completed.

“It is too early to provide any estimates for the completion of the liquidation,” it added.

Hyflux went into liquidation in July last year after it failed to conclude restructuring negotiations with a slew of potential investors, putting an end to the three decade-old company that was once seen as a Singapore success story.

• With additional information from The Straits Times