Hyflux shareholders to stage protest at Hong Lim

[Lethalstrike]

SINGAPORE - Several Hyflux investors will be staging a protest at the Speakers' Corner at Hong Lim Park on Saturday (March 30) to vent their anger over the state of affairs at the troubled water treatment company, The Straits Times has learnt.

 

They also intend to appeal for goodwill from national water agency PUB over what they see as a raw deal for investors. PUB had said it will take control of Hyflux's Tuaspring desalination facility at zero dollars and waive any compensation claims PUB has against the company if the firm does not rectify its defaults.

 

The protest, which is planned from 3pm to 4pm, comes days before an important scheme meeting on April 5, where Hyflux creditors will vote on a rescue plan.

 

Protest organiser Alex Leong, 43, said he has already received approval from the police and the National Parks Board on Monday (March 25) for the protest. He expects many people to turn up, based on an interest poll that he had put out to Hyflux investors several weeks ago.

 

Mr Leong had invested around $100,000 into Hyflux preference shares as part of the group's fund-raising efforts in 2011, and had also reinvested all his dividends back into Hyflux.

 

A restructuring plan offered by white knight Salim-Medco consortium, SM Investments (SMI), could potentially wipe out 97 per cent of what he has invested so far if creditors vote in favour of the plan.

 

The restructuring plan has to be approved by April 5 by at least 50 per cent in number and 75 per cent in value of each creditor class.

 

If the restructuring plan vote fails on April 5 and the defaults cannot be cured, that is likely the end of Hyflux. PUB will take over the Tuaspring Desalination Plant (above) and the Hyflux board can put the company up for liquidation.

 

Hyflux reorganisation plan will see heavy losses for small investors. SMI had offered to bail out Hyflux with a $530 million lifeline for 60 per cent of the restructured company, but it had also threatened to leave the deal on April 1 unless the defaults were rectified.

 

On Monday, Mr David Gerald, the president of the Securities Investors Association (Singapore), or Sias, wrote to the Hyflux board, stating that PUB's notice of default and SMI's threat to walk out have caused anxiety among investors.

 

"It is generally felt that the company is creating further uncertainty by not issuing the revised scheme document to the creditors," wrote Mr Gerald. The revisions would incorporate his association's proposal to let creditors share the upsides from contingent claims.

 

The cancellation of a scheduled town-hall meeting by Hyflux has also created anxiety and the meeting had not been reconvened, Mr Gerald added.

 

He said: "The company is not giving confidence to investors that it will resolve all outstanding issues to keep the restructuring deal with SMI on track."

 

The Sias told ST that it was not aware of Saturday's protest.

 

Meanwhile, Mr Leong worries that if the original restructuring vote goes through, his investments, which make up a large portion of his savings, could vanish.

 

"Enough is enough. Many of us are fed up with the rubbish that we have been seeing about Hyflux," said Mr Leong, adding that protestors will be wielding placards to indicate their frustration.

 

PUB's takeover of the desalination plant at Tuaspring without payment would not go down well with individual investors like him, said Mr Leong, especially since the plant is still operational and holds value.

 

"We understand the need for PUB to get its compensation as Hyflux has failed its obligations under their water agreement, but we are trying to appeal to PUB to exercise goodwill towards investors like us," he said.

 

Another investor, former polytechnic lecturer Raymond Koh, 47, said he, too, stands to lose around $100,000 from a 2011 investment.

 

Mr Koh said: "I think the authorities have to recognise that behind the numbers, there are real people with real families and for many of them, a 97 per cent wipeout can be very devastating."

 

Although the protest might not reap any change for investors, Mr Koh said it is good enough that Hyflux, the authorities and other parties mired in the Hyflux saga take notice.

 

"Every small effort counts," he said.

https://www.straitstimes.com/business/hyflux-investors-plan-hong-lim-park-protest-on-saturday

 

I guess no matter what they do, they are not getting their 100k worth of investments back....

[mersaylee]

水长流，一去不回头

[Kb27]

You invest in what you can afford to lose.

Don't you know that ?

 

Protest for what ?

[Vid]

[Victor68]

A company dealing with water and power has to close shop whilst the CEO collects big fat pay and bonus. I thought she was also voted some title not too long ago. The poor public who listen to all these news reports thought they followed the right investment since news were from official sources. 

[Kusje]

You invest in what you can afford to lose.

Don't you know that ?

 

Protest for what ?

 

Depends on how the investments were sold.

 

If the company and their agents knew that the TuasSpring asset was worthless (loss making) and still sold the bonds or perps without informing investors, then that is likely illegal already.

[Lethalstrike]

A company dealing with water and power has to close shop whilst the CEO collects big fat pay and bonus. I thought she was also voted some title not too long ago. The poor public who listen to all these news reports thought they followed the right investment since news were from official sources.

CEO already planning her own exit strategy a few years ago.

 

The problem with the investors is that they should had guessed something is wrong when Hyflux is still paying dividends when it's already have cashflow problems.

 

But as long as dividends are paid, everyone keep quiet and happy. Now the music stops, stage protest and kpkb to authorities about real families losing their hard earned money. Get real man...

[Beregond]

'reinvested all his dividends back into Hyflux.'

 

at one time he did make money, but dun know when to stop.

blinded by the profit maybe.

when he make money , did he think of giving back ??

when he lose he want to take back??

 

 

[mersaylee]

'reinvested all his dividends back into Hyflux.'

 

at one time he did make money, but dun know when to stop.

blinded by the profit maybe.

when he make money , did he think of giving back ??

when he lose he want to take back??

That’s greed. Want to jiak bao and yet bao jiak.

[Knoobie]

 

 

To illustrate its point, Hyflux said the average wholesale electricity price dropped from about S$220 per MWh in 2011 to an average of S$81 per MWh in 2017. This resulted in “significant losses from electricity generation”, it added.

 

Dropped so much for electricity generation?? 

[Enye]

wah....anyone wanna join me in hong lim park to stage protest for all the $ i lost at singapore pools?

 

 

[Freeder]

Sad to say , most of the old folks still dabble in risky investments despite previous incidents like CLOBB & Penny stocks fiascos....

End of the day , PAP fault..

[Enye]

wah 100k for the last 8 years.... never mind treat as car expense off lah

 

then go look at cpf statement to console yourself

 

 

 

 

Edited March 26, 2019 by Enye

[Voodooman]

Dropped so much for electricity generation??

Partly oil price, partly supply issue. But when Hyflux issued those perps a few years back, the electricity market was already very bad yet they sold those bonds to retail investors to repay institutional holders, that part I not sure.

[mersaylee]

wah....anyone wanna join me in hong lim park to stage protest for all the $ i lost at singapore pools?

 

I’ve come to the stage whereby I view it as a form of philanthropy...to also reinvest any peanut earnings from SP to indirectly help the needy...

[cashcow]

Quote

 

 

 

"To illustrate its point, Hyflux said the average wholesale electricity price dropped from about S$220 per MWh in 2011 to an average of S$81 per MWh in 2017. This resulted in “significant losses from electricity generation”, it added."

 

 

How come water company becomes power losing company.

 

I though water is "pao-chiak" biz and not "pitchiak" like this?

 

 

[Karoon]

Dropped so much for electricity generation?? 

 

https://www.businesstimes.com.sg/energy-commodities/power-generation-sector-crushed-by-massive-overcapacity

 

 

BT EXCLUSIVE

Power generation sector crushed by massive overcapacity

EMA says investments in generation capacity are commercial decisions, but it's exploring temporary measures to alleviate situation

 

sg electricity market is quite screwed up.

 

All players know if they build more plants, they will kill each other.

So what did they do?

Build more plants...

Now everyone in the red except the malaysian owned one, which funnily did not build more plants recently unlike many others.

 

good for us users... but wait... at $81/MWh we should be paying about 10cts/kwh...

 

still more room for discounts!

Edited March 26, 2019 by Karoon

[Enye]

https://www.businesstimes.com.sg/energy-commodities/power-generation-sector-crushed-by-massive-overcapacity

 

 

sg electricity market is quite screwed up.

 

All players know if they build more plants, they will kill each other.

So what did they do?

Build more plants...

Now everyone in the red except the malaysian owned one, which funnily did not build more plants recently unlike many others.

 

good for us users... but wait... at $81/MWh we should be paying about 10cts/kwh...

 

still more room for discounts!

 

wah...thats a natural industry cycle lah and not restrictly solely to power generation

 

next comes consolidation and so on