SINGAPORE (March 9): Hyflux is proposing to amend the terms of its restructuring plan to allow the junior creditor group — which includes some 34,000 minority investors in its preference shares and perpetual securities (P&Ps) — to share the upside from contingent liabilities extinguishing or expiring.
The alternative proposal announced on Friday follows a Feb 27 letter written by investor advocacy group Securities Investors Association Singapore (SIAS), urging Hyflux to give its junior creditor group a fairer deal as the existing restructuring plan “clearly favours” the senior unsecured creditors that include banks and noteholders.
In particular, SIAS disagreed with how, in the event that liabilities — such as liquidated damages in a construction project — did not crystallise, the 24.6% recovery rate for the senior unsecured creditors could increase although junior creditors would see their recovery rates stay... (Click here to read the full story)