The Reorganisation Process


As announced on 26 November 2019, Hyflux has entered into a restructuring agreement with Utico FZC.

Please refer to the following link for the announcement: THE PROPOSED EQUITY AND WORKING CAPITAL INVESTMENT OF S$400,000,000 IN HYFLUX LTD BY UTICO FZC

Should you require more clarification or information, please contact Hyflux’s support hotline at (+65) 3157 7999 available on Monday, Tuesday, and Thursday, 9am to 5pm (Singapore time)

Thank you.


Additional FAQ on Tuaspring 

Query Hyflux’s Response
Were there operational issues with Tuaspring’s water plant since 2017? If so, why didn’t Hyflux announce there were defaults under the WPA? There were some operational issues in 2017 and 2018 but these were issues that PUB and Tuaspring were able to resolve. No announcement was made in relation to these operational issues as they were not regarded material under the SGX Listing Rules.

Updated 25 March 2019

FAQs on voluntary reorganisation process

Query Hyflux’s Response
What is this reorganisation process that has been commenced and why? The oversupply of gas in the Singapore market has resulted in depressed electricity prices which has adversely impacted TuaSpring’s financial performance in 2017 and in the first quarter of 2018.

As Hyflux operates in a capital intensive industry, Tuaspring’s negative performance has had a knock-on effect on the Group’s overall cash position, resulting in the current liquidity crunch. There were instances where increasing amounts were requested for performance bonds in support of ongoing projects. There were also restrictions on the repatriation of monies into Singapore from completed overseas projects.

In the circumstances, Hyflux decided to commence a transparent financial reorganisation supervised by the High Court of the Republic of Singapore.

In particular, this process will see an effective engagement with stakeholders to formulate a strategy that will bridge the temporary cash gap and optimise value.

It is important to note that this process is not a liquidation or judicial management process.

On the ground, it is business as usual.

Operationally, Hyflux remains committed to our clients and key stakeholders, whom we will engage and work closely with throughout the reorganisation so as to achieve the best possible outcome for all parties.

Is the entire Hyflux Group affected by the court filing? No, you may find the list of entities included in this filing from the announcement on Hyflux’s website here:
How different is this court-supervised reorganisation process from filing for bankruptcy? This reorganisation process is not a bankruptcy process.

It is important to note that this process is not a liquidation or a judicial management.

The aim of the reorganisation is to provide Hyflux an opportunity to reorganise its liabilities and businesses so as to bridge the temporary cash gap and secure the future value of Hyflux’s business. The process allows for fresh/rescue financing to be procured with the court’s approval and for assets to be divested.

Despite the short term liquidity constraints, with this reorganisation, Hyflux aims to continue to operate its business as usual during this process. In particular,  Hyflux intends to take steps to secure sufficient cash to fund  the completion of its projects which will add significant value to Hyflux’s business.

Hyflux is optimistic that following this process, it will emerge a stronger business thereby optimising value for all of Hyflux’s stakeholders.

How much longer will the moratorium last? Following the hearing on 20 February 2020, the High Court has extended the moratorium to 30 April 2020.
There are conflicting views in the media, how do I know what is correct? Publicity surrounding the reorganisation process would invariably involve differing views from people including those not affected by the reorganisation or connected to the Hyflux Group. We regret any confusion caused by that and have sought to minimise the uncertainty caused by conflicting, inaccurate or uninformed views in the public domain by putting in place a communications protocol and dedicated channels for queries from various stakeholders to be addressed directly by the company including through townhall meetings, the court process, the company website, MASNET announcements, a hotline and direct contact with our advisors. We seek your understanding and patience in any delay in any of our communications through this channel as we prioritise the Group’s operations.
Where can I find more information on the reorganisation process? Further information about this process and all updates will be made available on

Company announcements, are available on the on SGXnet, and on Hyflux’s website at

Lastly, you may also reach us on our support hotline at (+65) 3157 7999 available on Monday, Tuesday, and Thursday, 9am to 5pm (Singapore time).

How does this affect the Hyflux Group’s operations outside of Singapore? Hyflux commenced the court-supervised process to protect its operations while it seeks to reorganise its businesses and liabilities.

Operations are meant to continue as usual during this period, whether in Singapore or abroad, to minimise disruption to its businesses. Hyflux remains committed to completing our customer projects with the same consistency and excellence that we have always demonstrated.

Presently, the priority is to secure sufficient cash flow in order to complete and deliver on existing projects and operations, both domestic and abroad.

Does Hyflux have sufficient cash to continue operations? Despite the short term liquidity constraints, Hyflux aims with this reorganisation to continue to operate business as usual during this process. Hyflux intends to take steps to secure sufficient cash to complete and deliver on existing projects and operations, both domestic and abroad. Hyflux is also engaging potential financiers on securing fresh/rescue financing as part of the reorganisation process.
What is the extent of Hyflux’s debt obligations? The financial statements and annual reports published by Hyflux are available to the public and contains information on Hyflux’s liabilities. In the course of the reorganisation, updates on the latest financial position will be reviewed and provided to the court and affected parties.
When will Hyflux announce its reorganisation plans? Hyflux will provide updates on the process regularly including when the reorganisation plan has been formulated.
Why have you suspended trading of the shares and securities? At the moment, Hyflux is working with its advisors on how best to manage its cash position during the process, including identifying critical payments to be made.

The situation remains fluid right now, and much depends on the negotiations with our stakeholder groups moving forward. While we aim to provide material updates as soon as we can, the suspension of trading was necessary to avoid any person trading on the exchange without complete information.

Who are your advisors? Clifford Chance Pte Ltd and Cavenagh Law LLP are our legal advisors and Ernst & Young Solutions LLP are our financial advisors.
What options are available to me? Although a moratorium is in place, a stakeholder who wishes to commence proceedings against Hyflux may apply to court for leave to do so.

However, we are not able to comment on the likelihood of such leave being granted. You may wish to seek independent legal advice on this.

Is Hyflux looking for a government bail out? No, Hyflux is not seeking a bail out from the Singapore government.

We have a viable business and are simply seeking to reorganise our liabilities.

We are actively engaging our stakeholders during this process to assess our best options.

Is HyfluxShop affected? No, HyfluxShop is not part of this reorganisation process and is not affected. It is a legally and operationally separate entity from the rest of the Hyflux Group.

Updated as at 28 November 2019