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Utico makes offer for Hyflux assets with Creditors and PnP recovery

  • Utico makes offer for Hyflux assets with Creditors and PnP recovery

About the entity

Utico
UTICO is U.A.E’s largest private Build-Own-Operate company for Desalination with capacity of 160,000 m3/day Sea water Reverse Osmosis plant and Gas based Power generation capacity of 120 MW and 270 MW.
Schneider Electric

Themes

Utico has made an offer for Hyflux assets and PnP recovery which Borelli Walsh (BW) is considering as part of creditor agreement.

In a statement, the Middle Eastern utility major said that it was still engaged with the information provided and the current status of assets which included offtaker, lender and co-shareholder defaults.

Malakoff from Malaysia, Al Fairuz Trading & Contracting in Oman, Algerian Energy Co. (AEC) in Algeria , Oman Power and Water Procurement (OPWP) in Oman are all embroiled in the process, for an agreement with Aqualia, Majis Industrial Service, MARAFIQ Oman, Sacyr  and Almar Water Solutions,  who are deeply collaborated with some others for an offering which however has no creditor settlements.

All of them are seeking higher tariffs from offtakers and lender haircuts, which is being rejected since it offers only zero recovery for shareholders.

Utico further stated that they are in touch with all other bidders for the assets and is working to strike an agreement for the same.

This puts Utico in a unique proposition where creditors, shareholders and offtakers including project lenders are offered a win–win-win proposition. 

BW is still considering the offers, and Utico is expectant that an exclusive period of engagement to reach an agreement will be entered into soon, which could lead to a positive sale agreement and recovery for all creditors including PnP.

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