If it fails to do so, PUB will exercise its right to terminate the water purchase agreement and take control of the plant, once the default notice period expires.understands that PUB has given Hyflux enough time to complete its planned restructuring scheme in April.
David Gerald, president of Sias, said: “PUB's notice to Hyflux has huge implications for the restructuring scheme. The company is currently insolvent and the only way it can comply with the default notice as it stands is to ensure restructuring is successful.” The debt-laden water treatment company is asking retail perpetual and preference shareholders to accept a 10.7 per cent recovery on their principal under its restructuring deal. Medium-term noteholders have been promised a recovery rate of at least 24.5 per cent.