Middle East Suitor For Crisis-hit Hyflux Submits Binding Offer

Utico, the Middle Eastern suitor of embattled Singaporean water treatment company Hyflux Ltd., said it has submitted a binding offer to restructure the group’s debt.

The move caps a prolonged negotiation for one of the highest-profile restructurings in the city-state, after Hyflux said last year that it had received a non-binding letter of intent. The latest binding offer will remain open for acceptance until July 31, according to a filing Friday with the Singapore Exchange.

Hyflux’s collapse has left some 34,000 retail investors in the lurch. Adding to the complexity, Singapore authorities said last month they started an investigation into Hyflux and its current and former directors for suspected false and misleading statements.

Under the terms of Utico’s offer, debts owed to unsecured creditors, bondholders and trade creditors will be exchanged into Utico and Hyflux shares. Hyflux’s perpetual and preference shareholders will get cash, and Utico and Hyflux shares in exchange for their debt, according to the filing.