SINGAPORE (Apr 8): Two mid-day announcements on April 4 by Hyflux and its rescuer SM Investments left both investors and market watchers confused. First, Hyflux cancelled the meetings to vote on a scheme of arrangement scheduled for April 5 and 8, because it claimed SMI had repudiated the restructuring agreement.

Under the terms of an October 2018 rescue agreement, a group of Indonesian investors led by Anthoni Salim will inject $400 million into debt-ridden Hyflux in exchange for a 60% stake. They will also loan the company an additional $130 million.

Things turned sour in recent weeks as differences between both parties surfaced. New issues were raised, including matters previously undisclosed by Hyflux in connection with the Tuaspring plant, its key operating asset.

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