(25-01-2019, 08:47 AM)ACTIVIST SPEAKS Wrote: [ -> ]Now I understand why some CPS/Perps holders would rather liquidate than to support the restructuring....Why should one support the restructuring if by doing so, one ends up with almost nothing?
Salim's participation appears to be the bitter pill the CPS/Perps holders find hard to swallow. With even the unsecured bank creditors converted to equity, surely Hyflux can continue operating without Salim's cash.
The bitter pill is:
1)Why were 6 bidders rejected by PUB who allowed only 2 local companies to bid. Sembcorp and Keppel. Sembcorp bidded below Maybank loan which is approx 500 mil. Keppel abstained.
But Salim is allowed by PUBPto bid 400 million for controlling stake at the group level which includes Tuaspring , Singspring , Tuasone, e.tc?
I don't see any rationale but the effect is, the hampering of the bidding process would surely have resulted in a lower return to the investors . I am of the view that the Sembcorp deal is better than the Salim deal.
2) it was stated there was no default or a legal demand for payment , yet Hyflux entered into a voluntary court protection . To me, this was ill timed. CFO stated that before the court protection , the price talked about for Tuaspring was still around book value in Feb /march ( 1.3 billion ) . Court protection was seeked in may. September/Oct, it was then revealed that Sembcorp bidded and it was around below 500 million. It is reasonable to think that the voluntary court protection resulted in this up to 800 million of value lost .
Why not wait till a legal demand of payment , fight in court, lost , then apply for court protection , at least there is more time to sell Tuaspring ...besides, entering court protection could have triggered more defaults and legal payments ....
3) OL stated she was given an 8 million projection and she therefore thought it was feasible with her advisors. This is such an irresponsible statement and up till now, there is no clarification.
4) it is very ridiculous when u look at the power market and why there is a glut in electricity and also why we are are seemingly enjoying low electricity prices up to 30% off ( or rather,whywe have been paying high electricity prices previously). This is a long story ....but is interesting to know.
Anyway, I have lost faith in our market, lost faith in SIAS.
When a company is allowed to conduct a Townhall under a without prejudice setting ( and it seems it quite common), irresponsible statements without accountability can be thrown about ..a complete waste of time