Hydrology Public Limited Company, formerly known as Water Bonds and later Nexus Water Bonds originally proposed a creditors voluntary arrangement or CVA as a result of financial hurdles in the company.
Financial Hurdles at Hydrology PLC
The company Hydrology was launched with the aim of entering commercial water markets through financing as well as developing facilities that treat water and purify it for industrial use. The firm was on the right path, and by late 2016, they were already running two projects in the United States and Brazil. They were also listed on the Cyprus Stock Exchange.
The reasons for their financial problems were mentioned in their proposal to enter a CVA were:
- The United States project suffered from the collapse of gas and oil price, leading to a 73% drop in water treatment and disposal price.
- Both the US and Brazil projects needed more financing for maintenance and development.
- The projects were considered toxic by the investment community
- They experienced significant legal fights with the local partners.
As a result, Hydrology PLC defaulted on interest payments to holders or investors between March and September 2016 as well as October 2016 to March 2017. That’s because the firm was simply unable to pay.