Maybank terminates collaboration agreement with Hyflux

By Massita Ahmad

SINGAPORE, April 19 (Bernama) -- Malayan Banking Bhd (Maybank) has decided to terminate the collaboration agreement relating to the divestment of the Tuaspring integrated water and power plant (IWPP) with immediate effect, said water treatment firm Hyflux Ltd.

The Singapore-based firm announced today it had received a letter from Maybank terminating the agreement signed with Hyflux and its unit Tuaspring Pte Ltd in July 2018.

Under the agreement, the debt-laden Hyflux and Tuaspring Pte Ltd had agreed to the execution of a binding agreement with a successful bidder/investor for the full settlement and discharge of Maybank’s total liabilities by the “standstill deadline”.

However, till today, there has been no execution of a binding agreement with a successful bidder/investor by the six-time extended standstill deadline, Hyflux said in a filing with the Singapore Exchange.

“(According to Maybank,) this constitutes a breach which is incapable of remedy under the collaboration agreement entitling Maybank to terminate the collaboration agreement,” it added.

Maybank is the only secured financier of Tuaspring with an exposure reportedly of about S$602.4 million for the latter’s IWPP.

Singapore’s national water agency, the Public Utilities Board (PUB), had on April 17 issued a notice to Tuaspring to terminate its water purchase agreement with Hyflux, aiming at safeguarding the country’s water security. The termination notice provides a 30-day notice period before PUB takes over Tuaspring’s desalination plant.

Hyflux is currently struggling to restructure its debts with its liabilities which reportedly stood at S$2.95 billion as at March 31, 2018.

Hyflux also announced today that it had received notices from Maybank to PUB and the Energy Market Authority of Singapore in relation to the direct agreement between Tuaspring, PUB and the bank dated Nov 21, 2013.

“These notices are in respect of an enforcement event and acceleration of the maturity of all amounts owing under the Tuaspring financing documents,” it said.

Maybank has also stated its intention to appoint receivers and managers over the assets of Tuaspring save for the “desalination plant and shared infrastructure”.

In the interim, Hyflux said the operations of the power plant at the Tuaspring IWPP were expected to continue as usual.

The termination of the collaboration agreement is expected to have a material impact on the financial performance of the group, it said.

Hyflux said it would make the appropriate announcements as and when there were any further material developments on this matter.


    Other News

Pemacuan Peralihan Tenaga Perlu Kerjasama Yang Lebih Banyak - Mga

KUALA LUMPUR, 4 April (Bernama) -- Pemacuan inovasi dan kemampanan dalam peralihan teraga memerlukan kerjasama yang lebih banyak dalam kalangan pihak berkepentigan industri, kata Persatuan Gas Malaysia (MGA).

Sarawak Energy Belanja Rm42 Juta Tambah Baik Bekalan Elektrik

SIBU, 2 April (Bernama) -- Sarawak Energy Berhad memperuntukkan RM42 juta pada tahun lepas bagi membiayai beberapa projek penambahbaikan di sekitar kawasan Sibu, Kanowit, Kapit, Daro dan Dalat di bahagian tengah Sarawak bagi memastikan kestabilan bekalan elektrik kepada pengguna.

Jentayu Peroleh Kelulusan Sc Ambil Alih Aset Telekosang Hydro, Jentayu Solar

KUALA LUMPUR, 29 Mac (Bernama) -- Syarikat senaraian Pasaran Utama, Jentayu Sustainables Bhd telah menerima kelulusan utama bersyarat dengan Suruhanjaya Sekuriti Malaysia (SC) bagi memperoleh aset Telekosang Hydro dan Jentayu Solar, yang akan memacu kumpulan itu menjadi pemain tenaga boleh diperbaharui.

© 2024 BERNAMA. All Rights Reserved. Disclaimer | Privacy Policy | Security Policy This material may not be published, broadcast,
rewritten or redistributed in any form except with the prior written permission of BERNAMA.

Contact us :
General [ +603-2693 9933, ]
Product/Service Enquiries [ +603-2050 4466, ]