(Reuters) - Hyflux Ltd (HYFL.SI) has applied to the country’s high court to begin a reorganization of its business after lower electricity prices hurt its finances, the water treatment company said on Tuesday.
Hyflux said continued weakness in electricity prices had increased strain on its finances and caused short-term liquidity restrictions.
The company is seeking a 30-day moratorium preventing creditors from taking actions that could hurt the company’s finances.
Hyflux said it was working closely with creditors to determine the best possible outcome and would meanwhile only make payments critical to its operations.
The company said it would not be making the payment of the distribution on its S$500 million ($373.94 million) Perpetual Capital Securities due on May 28.
Earlier this month, the company reported a quarterly loss of S$22.2 million versus a loss of S$64,000 a year earlier.
The company said its financial position remained unclear pending the outcome of the court supervised reorganization process.
Hyflux had requested a suspension of trading in its shares on May 21.
Reporting by Chandini Monnappa in Bengaluru; editing by Jason Neely and Jane Merriman