Utico has agreed to extend the deadline of restructuring agreement with Hyflux, which expired on 26 May, to 30 June.
The extension, with additional terms, gives the senior creditors same recovery, improves the P&P recovery, and gives relief to the shareholders and lenders of Oman and Algeria IWP SPVs.
Hyflux sent a letter requesting the extension on 4 June. Utico has agreed with a primary requirement not to extend the moratorium beyond 30 July 2020, which is the current moratorium granted by the court, or make it shorter.
Utico has also asked the Hyflux board to step down immediately on scheme approval.
This action by Utico has also given certainty to the deal with shares and cash option. Along with asset rectification and remedy, Utico stated that this will build true all round value for all parties at Hyflux, creditors, P&P, asset shareholders and lenders.
In another development, Utico stated that two interested parties had approached it to partner for acquisition of Hyflux and grow Utico.