(Bloomberg) -- A Singapore court on Wednesday ruled in favor of liquidating Hyflux Ltd., following a years-long saga in one of the city-state’s most high-profile distressed cases.
The ruling came in a hearing that was adjourned from July 12 after the United Arab Emirates-based Utico FZC asked to be heard on its application to intervene in the case. Hyflux said last month the judicial manager terminated discussions with Utico as it was unable to meet the conditions required.
The hearing comes after the court-appointed manager in charge of the water treatment company since November applied last month to wind up the firm. Judicial manager Borrelli Walsh Ltd. said in a statement in June that “the remaining value” of the Hyflux Group is best realized in a liquidation.
The decision may cap a drawn-out saga around the company, which has left retail investors and creditors holding losses. Hyflux began a court-supervised debt restructuring process in May 2018 and faced about S$2.8 billion ($2.1 billion) of investor claims. It received multiple offers from several bidders along the way, none of which concluded.
A piecemeal sale of Hyflux’s assets has already started, with the company announcing earlier this month that Keppel Infrastructure Trust will acquire from it the remaining 30% stake in a desalination plant for S$12 million. Bloomberg News had reported in June that sales in the liquidation process would likely bring in less than S$200 million, a fraction of the amount creditors are claiming.
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