Hyflux seeks super priority debt status for $530m investment from Indonesia

The financing will be prioritised over assets like shares in HyfluxShop Holdings.

Embattled Hyflux said it made a court application to seek super priority debt status for the $530m investment it obtained from the consortium called SM Investments comprised of Medco Group and Indonesian conglomerate Salim Group.

According to an announcement, Hyflux had applied for the loan to be secured through “way of first priority fixed charges” over its other properties, in line with the Companies Act. The properties include Hyflux’s shares in HyfluxShop Holdings; its 6% cumulative non-convertible non-voting perpetual preference shares in the capital of HyfluxShop Holdings; its shares in Spring China Utility; and its shares in NewSpring Utility.

The super priority debt will also be treated as if it were part of the costs and expenses of the winding up if the company is wound up. Hyflux added that it will provide more details on its application once the court gives its directions.

As previously reported, SM Investments will subscribe for ordinary shares representing 60% of enlarged issue share capital for $400m and extend Hyflux a shareholder’s loan of a principal amount of $130m. It will also grant a loan of a principal amount of $30m to supply the company’s initial working capital requirements.

The investment and loan will be used to settle, discharge or redeem Hyflux’s unsecured financial debt, preference shares perpetual securities, contingent debt and trade debt; and finance the working capital needs of the Group's business.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia