Singapore Big Four firm WongPartnership has been replaced by Clifford Chance and Cavenagh Law as legal advisors to embattled water treatment firm Hyflux, according to media reports.
The Singapore-listed Hyflux firm ran into a financial crisis last year and is currently debt-ridden, owing a total of $2.8 billion to various groups of creditors.
WongPartnership was representing Hyflux in its debt moratorium hearing, which has been postponed to Feb 28.
According to The Straits Times, WongPartnership applied to discharge itself as Hyflux’s counsel because of “loss of confidence and other good cause.”
Following this, the Singapore High Court granted WongPartnership and Hyflux a one-week adjournment to reconcile or have new lawyers brought in.
Middle Eastern utility provider Utico, looking to enter the Singapore market, has proposed a $400 million rescue package for Hyflux while competitor Aqua Munda has invited some of Hyflux's creditors to tender their debt buyout offers at a minimum discount of 85 percent.
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