Maybank kills collaboration agreement with Tuaspring and Hyflux

It will appoint receivers and managers over the assets of Tuaspring, save for its desalination plant and shared infrastructure.

Maybank has ended a collaboration agreement with Tuaspring and Hyflux in the latest fallout to hit the embattled water and power company.

Pursuant to the collaboration agreement, Hyflux and Tuaspring agreed to, inter alia, the execution of a binding agreement with a successful bidder for the full settlement and discharge of Maybank’s total liabilities. The deadline, which was initially set for 15 October 2018, was later extended to 8 November, 4 December, 31 December, 4 February and 28 February.

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“There has been no execution of a binding agreement with a successful bidder/investor by the extended standstill deadline. This constitutes a breach which is incapable of remedy under the collaboration agreement, entitling Maybank to terminate the collaboration agreement,” Hyflux said.

The company, previously lauded as one of the most successful corporate stories in Singapore, is now saddled with $2.8b (US$2.1b) of unsecured claims and default notices.

The termination of the agreement is expected to have a material impact on the group’s financial performance, Hyflux said in a statement to the Singapore Exchange (SGX). Maybank also stated its intention to appoint receivers and managers over the assets of Tuaspring, save for the desalination plant and shared infrastructure.