In June 2019, Hyflux announced that its wholly owned unit Tianjin Dagang Newspring (TDN) had restructured a Bank of China loan of 617 million yuan (S$121.3 million). The maturity was extended by three years to 2026, with lower annual repayments. The loan related to TDN's 100,000 m³/day seawater desalination plant in Dagang, Tianjin, and was guaranteed by Hyflux. The bank would also receive a pledge over the plant. As The Straits Times reported, Hyflux disclosed this in a filing to the Singapore Exchange.
The report shows how a desalination plant became a building block in a group restructuring: Hyflux described the renegotiation as part of efforts to restructure its liabilities and ease the unit's cash flow in the short to medium term.
Source: The Straits Times