When Hyflux issued the bonds, a lot of people were excited about it as it was kind of important to Singapore as water is important to us. And investors think that it was backed by the government but it is not. Everyone started telling one another about this "good deal of 6% safe government backed bonds". But in the end, Hyflux dreamt big but couldnt make it work so they had to apply with the court to reorganize their debts and business in May 2018. Their finance were not looking great in the first place when they issued the bonds as well but people believed in friends and experts without doing their own research and invest in them.
So Hyflux tried to sell the desalination plant so that they can use the money to fix their stuffs. In the end, PUB only approved 2 buyers and Sembcorp was the only one who submitted a final bid on Oct 2018 but the bid wasnt enough to pay Maybank which is the main creditor.
Then Salim and Medco jumped into the game after a few days. But the small investors like the bond holders are not happy because with the price Salim and Medco offered, they will still lose most of their money. So they kept denying the plan and delaying it to get them to pay more.
PUB also started to warn Hyflux that they will take back the plant soon as Hyflux did not provide enough water based on their contracts. However, they are willing to waive off the penalty that Hyflux supposed to pay as they didnt fulfill the contract but PUB will take the plant for free.
Now because PUB wants to take the plant for free, Salim and Medco said they might take back their offer because of it. Then PUB say dont use them as an excuse. Which obviously just going to make things worse, i have no idea which smart alex decided to say that.
The mom-and-pop investors which is around 34,000 of them, started all sorts of stuffs like petition, telegram group, news article and so on to ask government to bail them out because they think Singapore government should fix their investment mistakes for them as water is important to Singapore, it shouldnt be controlled by a foreign entity, Singapore must save their retirement money, CPF let them used their CPF money to buy hence they must save them, they think that government shouldnt allow this to happen in the first place and all other random stuff.
I not sure if i missed out anything but its something like this. But in my opinion, Government will not bail them out as PUB alr said they can just take back the water desalination plant as Hyflux was the one who breached the contracts. They also should not be responsible for citizens investment mistakes.
When Hyflux issued the bonds, a lot of people were excited about it as it was kind of important to Singapore as water is important to us. And investors think that it was backed by the government but it is not. Everyone started telling one another about this "good deal of 6% safe government backed bonds". But in the end, Hyflux dreamt big but couldnt make it work so they had to apply with the court to reorganize their debts and business in May 2018. Their finance were not looking great in the first place when they issued the bonds as well but people believed in friends and experts without doing their own research and invest in them.
So Hyflux tried to sell the desalination plant so that they can use the money to fix their stuffs. In the end, PUB only approved 2 buyers and Sembcorp was the only one who submitted a final bid on Oct 2018 but the bid wasnt enough to pay Maybank which is the main creditor.
Then Salim and Medco jumped into the game after a few days. But the small investors like the bond holders are not happy because with the price Salim and Medco offered, they will still lose most of their money. So they kept denying the plan and delaying it to get them to pay more.
PUB also started to warn Hyflux that they will take back the plant soon as Hyflux did not provide enough water based on their contracts. However, they are willing to waive off the penalty that Hyflux supposed to pay as they didnt fulfill the contract but PUB will take the plant for free.
Now because PUB wants to take the plant for free, Salim and Medco said they might take back their offer because of it. Then PUB say dont use them as an excuse. Which obviously just going to make things worse, i have no idea which smart alex decided to say that.
The mom-and-pop investors which is around 34,000 of them, started all sorts of stuffs like petition, telegram group, news article and so on to ask government to bail them out because they think Singapore government should fix their investment mistakes for them as water is important to Singapore, it shouldnt be controlled by a foreign entity, Singapore must save their retirement money, CPF let them used their CPF money to buy hence they must save them, they think that government shouldnt allow this to happen in the first place and all other random stuff.
I not sure if i missed out anything but its something like this. But in my opinion, Government will not bail them out as PUB alr said they can just take back the water desalination plant as Hyflux was the one who breached the contracts. They also should not be responsible for citizens investment mistakes.