He also worried that this may result in other creditors asking for similar arrangements, as the company simply does not have the money to meet such requests.
On the grounds that it would cost more for the company alone to set aside the money, he decided not to order any sum of money into escrow, but added that in future similar cases, the company should “press the other morally responsible parties earlier in the process”. The other “stumbling block” the UWG named was the fact that it continued to be paid only 14 per cent of its outstanding fees, versus 59 per cent for Hyflux’s adviser, nTan Corporate Advisory.
The seven unsecured banks under the UWG include BNP Paribas, Mizuho Bank, KFW IPEX-Bank, Bangkok Bank and Standard Chartered Bank.
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