About 800 holders of Hyflux's notes, perpetual securities and preference shares got their chance to meet the management for the first time since the company applied for court protection in May.
The townhall sessions were held at Hyflux Building along Kallang Bahru Road on Jul 19, 2018. (Photo: Tang See Kit)
SINGAPORE: Holding on to bonds that will be maturing next September, Ms Teo attended the townhall session held by local water treatment firm Hyflux on Thursday (Jul 19) hoping to know if she will get her money back.
But she left feeling disappointed, said the investor who declined to reveal her full name.
“It felt like they needed to do their due diligence in giving us an update but it was as good as no information.”
Another retail investor, who spoke to Channel NewsAsia on condition of anonymity, echoed these sentiments.
While he appreciated the explanation behind Tuaspring Integrated Water and Power Plant's losses and the company’s decision to seek court protection, the retiree wanted more updates on the divestment of the plant and what that means when the 4.25 per cent bonds that he had invested S$250,000 into mature this September.
“There isn’t a conclusion and everything still hinges on the sale of Tuaspring and at what price. But my investment is due in September and that’s what I’m most concerned about,” he told Channel NewsAsia.
“I’m retired so this was going to be a key part of my income but now, not just the income, I have to be worried about my capital. My kids are going to university soon so I have to figure another way out.”
Seen as one of Singapore’s most successful business stories, Hyflux made the unexpected move on May 22 to seek court protection for a reorganisation of its business and liabilities. The household name, which first made its mark in water treatment before venturing into the power market, cited “prolonged weakness” in the local power market for the turnabout in fortunes.
Trading in its SGX-listed shares and related securities has since been suspended, leaving tens of thousands of retail investors reeling. This includes 34,000 holders of its perpetual securities and preference shareholders, as well as 16,000 shareholders.
To address these concerns, Hyflux partnered investor advocacy group, Securities Investors Association (Singapore) (SIAS), to organise three townhall sessions.
The first was held at Thursday noon for the noteholders, followed by a session at 7pm for holders of preference shares and perpetual securities. About 800 stakeholders registered for both sessions, according to SIAS. The evening session, in particular, was packed to the brim with about 600 investors.