It saddens me to see Hyflux , a household name in Singapore, fall on such hard times.

I have heard from many Hyflux bond holders that they intend to vote against the proposed restructuring plan on April 5. I believe they may be doing so out of either spite or desperation to send a message. However, I urge all parties involved to consider the possibility of liquidation, in which junior creditors would get nothing, and think of other investors who may rely on this restructuring plan to recoup their losses.

Many smaller retail bond holders cannot afford to lose the entirety of their investment, and a 20 per cent recovery rate would be better than nothing.

Investors should put their money where their mouth is and back Hyflux in this moment of distress. Hyflux's value falls with every day that passes without a plan; every failed restructuring attempt merely reduces the share of the pie for everyone.

Rather than remain bitter towards Hyflux management, investors should let bygones be bygones and vote in favour of the restructuring to give Hyflux a renewed future. I hope cooler heads will prevail and give Hyflux a second chance come April 5.

Tan Choong Oon

Source: https://www.straitstimes.com/forum/letters-in-print/investors-should-give-hyflux-management-a-second-chance