:A big shock’: Retail investors in Singapore caught out by Hyflux woes
Seen as one of Singapore’s most successful business stories, water treatment specialist Hyflux’s recent woes had come as a shock for many and for Mrs Goh, it was something that she had not seen coming.
Lured by an attractive 6 per cent coupon, she had put in S$10,000 into the company’s preference shares issued in 2011 at S$100 apiece.
While there was news about Hyflux’s weakened financial position over the years, semi-annual distribution payments have remained prompt, said the retail investor in her 60s who preferred not to reveal her full name.
“I didn’t expect it to be that bad and they would need to do debt restructuring,” she told Channel NewsAsia. “The announcement was a big shock.”
Citing “short-term liquidity constraints” after being hit hard by “prolonged weakness” in the local power market, mainboard-listed Hyflux on May 22 applied to the High Court to begin a reorganisation of its debt and businesses.