Drydocks World gets creditor consent for $2.2bn restructuring

12 July 2012

Shipyard operator trying to force through debt deal

Dubai shipyard operator Drydocks World has received approval from 97 per cent of the holders of its $2.2bn debt for a restructuring plan currently going through bankruptcy courts in Dubai.

The approval is a vital step for the company to force through its plan to restructure the debt in the face of opposition from Monarch Capital, the one creditor that has refused to agree. Drydocks needs the approval of only two-thirds of its creditors for the DIFC Courts, where the legal process is under way, to be put in place in the face of opposition from minority creditors.

Drydocks is in the process of forming a joint venture in South East Asia, a move that should net the firm a substantial payment from its joint venture partner that the Dubai company will use to pay off some of the $2.2bn of debt.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications