Maybank  terminates collaboration  agreement  with Hyflux
Published on: Saturday, April 20, 2019

SINGAPORE: Malayan Banking Bhd (Maybank) has decided to terminate the collaboration agreement relating to the divestment of the Tuaspring integrated water and power plant (IWPP) with immediate effect, said water treatment firm Hyflux Ltd.

The Singapore-based firm announced Friday it had received a letter from Maybank terminating the agreement signed with Hyflux and its unit Tuaspring Pte Ltd in July 2018.

Under the agreement, the debt-laden Hyflux and Tuaspring Pte Ltd had agreed to the execution of a binding agreement with a successful bidder/investor for the full settlement and discharge of Maybank’s total liabilities by the “standstill deadline”.

However, till today, there has been no execution of a binding agreement with a successful bidder/investor by the six-time extended standstill deadline, Hyflux said in a filing with the Singapore Exchange.

“(According to Maybank,) this constitutes a breach which is incapable of remedy under the collaboration agreement entitling Maybank to terminate the collaboration agreement,” it added. 

Maybank is the only secured financier of Tuaspring with an exposure reportedly of about S$602.4 million for the latter’s IWPP.

Singapore’s national water agency, the Public Utilities Board (PUB), had on April 17 issued a notice to Tuaspring to terminate its water purchase agreement with Hyflux, aiming at safeguarding the country’s water security. 

“The termination notice provides a 30-day notice period before PUB takes over Tuaspring’s desalination plant. – Bernama


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