Under the agreement, Hyflux will get investment totaling S$400 million from Utico, according to an exchange filing.

The pact caps drawn-out negotiations between the two companies.

Hyflux, Singapore’s highest-profile debt restructuring, had been looking for a white knight investor after a deal with Indonesian consortium SM Investments fell through in April.

Its catastrophic slump stunned 34,000 individual investors, and prompted a rare public protest in the country.

Under the agreement, Utico will take up new Hyflux shares for S$300 million accounting for a 95% stake in the company.

It will also give Hyflux a working capital line of up to S$100 million.

Under the proposed terms of the court-approved restructuring, S$250 million is to be paid to the unsecured debt holders.

Perpetual and preference shareholders can opt for an upfront cash payment or payment in installments.

A court hearing for the debt-laden company is scheduled for Friday.