Hyflux chief executive Ms Lum, together with the group's current and former directors, are under investigation by the Singapore police and financial regulator for suspected false and misleading statements and breaches of disclosure rules that may have taken place over a period of years.
On Thursday night, Indonesian Johnny Widjaja, the chief executive of PT Havilah, which is developing a coastal industrial estate in Java, made a formal cash offer for the debt of Hyflux’s bank lenders, note holders and other senior unsecured creditors through his vehicle, Pison Investments. If Mr Widjaja is able to buy out all of the senior debt, he can retire Hyflux’s debts at a discount and take the company out of insolvency without having to make any payments to holders of Hyflux's perpetuals and preference shares .Aqua Munda is offering to buy the senior debt at a minimum discount of 85 per cent in a reverse Dutch auction, and has committed S$208 million to make the purchases, as well as to fund Hyflux's capital requirements in addition to the debt buyout, if agreed.