"In light of the new material information... has been reviewing the allocation of the investment for the working capital."Investors who hold the $900 million of unsecured perpetual securities and preference shares stand to lose about 90 per cent of their money under the rescue plan and it is not clear how SMI's review will affect the amount investors might receive.
But SMI does not agree with Hyflux's proposed allocation, so the agreement may not hold, the statement noted. National water agency PUB has said that it will take over the Tuaspring desalination plant if Hyflux subsidiary Tuaspring Private Limited cannot rectify defaults by April 5. That would also mean terminating a water purchase agreement that has underpinned the plant's commercial operations.
Another point of contention involves a desalination plant in Algeria, whose water buyers may scrap a purchase agreement due to defaults at the facility.