SINGAPORE, April 16 (Reuters) - Singapore authorities said on Tuesday they are reviewing debt-laden water treatment company Hyflux’s accounting and auditing standards to see if the firm has breached any laws.
Hyflux is currently under a court-supervised restructuring process and its rescue by an Indonesian investor has been thrown into doubt after the investor pulled out of talks on a deal.
In a joint statement, the Monetary Authority of Singapore, the Accounting and Corporate Regulatory Authority and the Singapore Exchange Regulation said they “are currently reviewing Hyflux-related disclosure issues, as well as compliance with accounting and auditing standards.”
The review is “to determine if there have been breaches of listing rules and/or the relevant laws and regulations,” they said, without giving details or saying what had prompted the review.
Hyflux started a process to restructure its debt last year, which stood at about S$1.67 billion at the end of September.
Early this month, it said that a lifeline deal with its prospective Indonesian investor, SM Investments, had been terminated, throwing its debt restructuring plans into doubt.
On Monday, Hyflux took legal action against SM investments for abandoning the deal.
Hyflux was not immediately available for comment when contacted by Reuters.
Hyflux’s Tuaspring plant is the largest of three desalination plants in Singapore and an important water source for the city state. PUB, Singapore’s water agency, has warned Hyflux that it may take over the plant if the company does not fix its contractual defaults by April 30.
Reporting by Fathin Ungku; Editing by Susan Fenton