SINGAPORE (June 20): The Singapore High Court on Tuesday granted Hyflux a six-month moratorium against its creditors with immediate effect, after the group filed its application last month.

This means Hyflux will be able to complete its ongoing $750 million TuasOne Waste-to-Energy Plant project and US$250 million ($336.2 million) Qurayyat Independent Water Project, without having to answer to creditors unrelated to both projects until May 2019.

See: Hyflux files for court protection; preference shares, perps holders see investment at risk

See: What does the court-supervised debt reorganisation process mean for Hyflux investors?

The beleaguered water solutions provider’s bank debt presently stands at $1.84 billion excluding $900 million of subordinated debt, according to a June 14 affidavit by Hyflux founder and CEO, Olivia Lum.

Mizuho and KFW IPEX-Bank were among the creditors who showed support for the moratorium, but sought a shorter period of two to three months.

Lum, who was not present at the court hearing on Tuesday, has indicated that the group is in discussions with four interested parties for the possible sale of Hyflux’s Tuaspring Integrated Water and Power Project – adding she was “confident” of it being sold at, or above, its $1.3 billion book value.

See: Hyflux sinks into FY17 loss of $116.4 mil; continues seeking buyer for Tuaspring plant

Citing Hyflux’s lawyers and Lum’s June 14 affidavit, multiple news sources have reported the company is presently in preliminary talks with about 27 interested parties in hopes of receiving about $200 million in rescue financing in the region to fund their two ongoing projects.

The group also said to be in the midst of negotiating non-disclosure agreements (NDAs) with over 20 potential rescue financiers and investors after executing seven, which will provide limited data about Hyflux and the possibility of pursuing a concrete arrangement after more advanced discussions.