Dubai court sanctions Drydocks World restructuring

29 August 2012

Restructuring received shareholder approval in July

Dubai’s DIFC Courts has sanctioned the $2.2bn debt restructuring of Drydocks World.

The order comes after the Dubai shipyard operator received approval from 97 per cent of the holders for the restructuring plan in July.

US-based Monarch Capital tried to block the restructuring. Drydocks needed the approval of only two-thirds of its creditors to allow the restructuring to move ahead 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 can use to pay off some of the $2.2bn of debt.

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