HYFLUX Scheme Of Arrangement (SOA) : Yes or No ?
|image credit to businesstime.com|
Hyflux's replies to Sias raise more questions ( 16 Feb 2019)
Definitely not a happy day for all the 34,000+ Perps and Preference of shareholders!
Hyflux chief Olivia Lum 'deeply saddened' by losses suffered by investors, lenders (The Straits Times, 15 Feb 2019)
Yes, she should be! even with all the losses she made and donating the share subsequently, she is still a multi-millionaire and have a huge stake in privately own Hyfluxshop, also collecting fat pay till now.
What I am more sadden are those retirees (mom-pop ) retail investors who used their hard-earned CPF money to invest into the 6% coupon CPS.
Is getting 6% returns too greedy? I don’t think so, but Yes if you are talking about scams like 10-20% kind of returns per month.
Yes, STE deserved it and have to accept all the lost as I knew the cash-flow issue faced by Hyflux and my investment was more on speculative that betting the 6% CPS will be redeemed in Apr 2018. But I’m sure out of 34,000++ retail investors, there will be a genuine case, where someone who is not that savvy in investment analysis and not to mention about how to read the cash flow statement.
Remember that bond investors are not risk taker but rather they are “risk-averse”. I think it might be wrong to generalize that all Hyflux's Perps & Preference share investors are greedy yield-seeking investors while some may just try to get extra 2-3% points of returns over CPF interest rate, for their retirement under such, prolong low interest environment.
Why Did So Many Singaporeans Invest in Hyflux - The Positive Image Illusion (from sgdividends.blogspot.com)
How much did Hyflux board know when it okayed retail bonds? (The Straits Times , 19 Feb 2019)
The Underrated Importance of Regulatory Risk – Hyflux(from sgdividends.blogspot.com)
Expensive lesson learned.BTW, I have totally write-off my investment in Hyflux 6%CPS as per my previous update (here ). Thank God, with diversification and total net worth I have, I'm still OK and move on, but some may not be that lucky.
May God bless them all !!