Dubai’s shipbuilder Drydocks World has obtained the amount of creditor support needed to press ahead with its $2.2 billion debt restructuring, according to a company statement released on Saturday.
“As anticipated, over the weekend a number of the Group’s lenders formally confirmed their support for the Group’s restructuring proposal,” said the statement. “As a result, the Group can today confirm that it has secured the necessary level of support from its syndicated facility lenders to implement its restructuring proposals.”
The company hoped to lock in sufficient creditor support to proceed with debt restructuring by 2 April.
Drydocks expects to now be able to pay off its outstanding debt over the next five years, after protracted negotiations and legal action by Monarch, a hedge fund creditor, threatened to scupper the prospect of the group making good on syndicated loans taken out as part of its boom-time expansion into Singapore.
“The Group has always sought the support of all its syndicated lenders and its proposals were designed to achieve that,” said Khamis Juma Buamim, Chairman of Drydocks World and Maritime World. “Although a significant majority of lenders have confirmed their support for the Group’s plans, a small minority have yet to confirm their support. Nevertheless, the Group remains confident the absence of support from this minority will have no impact on the Group’s restructuring.”
Read out interview with Khamis Juma Buamim here.
