Drydocks World $2.2bn loan deal unlikely in 2011

17 August 2011

Loan was taken in October 2008

Dubai’s Drydocks World says the proposed $2.2bn loan deal with lenders may not be completed this year.

Initially, it was due to be completed by April. The loan is due in November. Drydocks World is a subsidiary of Dubai World.

“Discussions [with banks] are ongoing and it has not been completed yet,” Khamis Juma Buamim, chairman of Drydocks World was quoted as saying in local media.

“I can’t confirm if we will reach a restructuring agreement this year,” says Buamim.

Dubai World’s shipbuilding unit is restructuring a $2.2bn facility that was taken in October 2008. The loan comprises a $1.7bn three-year loan and a five-year $500m loan.

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