For Key Vendors / Suppliers

Query Hyflux’s Response
Will I be paid? The reorganisation process is being carried out under the supervision of the Singapore Court, and we have to be accountable to all stakeholders and the regulators for payments made during this period.

Such payments are subject to the scrutiny of the court. We have been advised to only make critical payments for the continued operations of the Hyflux Group, until the reorganisation process is complete.

We are working with our advisors to continue making payments to our critical suppliers and vendors during this period so as to ensure minimal disruption to our project schedule and project cost.

In respect of outstanding payments, we are currently assessing the position of all suppliers within the context of our future cash flow needs and a future reorganisation plan involving all stakeholders, including affected suppliers.

Your continued support is critical at this time, in order for us to continue operating our business as usual and to allow us to reorganise successfully.

Is Hyflux still able and committed to deliver our projects – should we consider suspending or terminating our ongoing contracts? Please rest assured that Hyflux values you as a key stakeholder, and wants to continue our existing business relationship.

We will work with you to ensure that any concerns you may have are properly considered.

You may wish to reach out to your usual point of contact at Hyflux, and we will speak to you as soon as practicable to address any concerns you may have.

Has Hyflux received any committed support from its lenders? Hyflux is presently working closely with its advisors to engage in discussions with its key lenders, as well as potential new investors and financiers, to obtain more liquidity and to improve its financial position.

The stakeholders will be kept informed of material developments in this process.

How can I be reassured that the reorganisation will succeed and that my claims would not be affected? Hyflux has commenced the reorganisation to allow its operations some breathing space while it seeks to reorganise its businesses and liabilities. The management will be considering taking measures to reduce the liabilities on Hyflux’s balance sheet, and will seek to engage you in this process.

Hyflux’s operations are meant to continue as usual during this period, to minimise disruption to its businesses, and Hyflux remains committed to complete our customer projects with the same consistency and excellence that we have always demonstrated.

The outcome of the reorganisation is still premature, and the situation remains fluid at this early stage in the process. Much depends on the negotiations with our key stakeholder groups, including vendors and suppliers, moving forward. We will provide regular updates at appropriate stages in the process.

How do I know if I am a critical vendor? We are working with our advisors to assess and identify goods or services that are essential to the continued operations of the Hyflux Group’s businesses and to support the various ongoing projects that need to be completed.
What about the money I am already owed? How can I continue to support Hyflux in this situation? In respect of outstanding payments, we are currently assessing the position of all suppliers within the context of our future cash flow needs and a future reorganisation plan involving all stakeholders, including affected suppliers. At present, there is a standstill on the payment of all pre-filing debts (i.e, debts incurred before 22 May 2018). The intention is for any new liabilities incurred during the process to be on a full payment basis so your continued support should not be to your detriment and will greatly assist Hyflux in operating smoothly during the reorganisation.

Updated as at 25 May 2018


IMPORTANT MESSAGE TO ALL SUPPLIERS AND VENDORS

As you are aware, Hyflux Ltd. and five of its subsidiaries have applied for moratorium protection under Section 211B of the Companies Act yesterday, on 22 May 2018. This court process is not a liquidation or judicial management process.

Since then, we have received many queries on what this means for you.

The reorganisation process is being carried out under the supervision of the Singapore Court, and we have to be accountable to all stakeholders for payments made during this period. Such payments are subject to the scrutiny of the Singapore Court. We have been advised to only make critical payments for the continued operations of the Hyflux Group, until the reorganisation process is complete.

We are working with our advisors to continue making payments to our critical suppliers and vendors during this period so as to ensure minimal disruption to our project schedule and project cost.

In respect of outstanding payments, we are currently assessing the position of all suppliers within the context of our future cash flow needs and a future reorganisation plan involving all stakeholders, including affected suppliers.

Your continued support is critical at this time, in order for us to continue operating our business as usual and to allow us to reorganise successfully.