Former white knight SM Investments (SMI) will be taking troubled utilities company Hyflux to court for breaking the terms of their scrapped $530 million rescue deal, a statement by the investor group said yesterday.

The move follows Hyflux’s initial salvo on Monday, when it sued SMI for reneging on their restructuring agreement. The SMI consortium, consisting of Indonesian investors led by Mr Anthoni Salim, said breaches by Hyflux gave it the right to claim the $38.9 million deposit placed in escrow for the deal.

Meanwhile, in a bourse filing yesterday, Hyflux said its largest creditor, Maybank, ended a deal that was meant to give it a ringside seat to the divestment of Tuaspring, and now intends to appoint receivers and managers for the Hyflux subsidiary.

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