Gulf Times – Dubai’s Drydocks refinancing talks stall on guarantees

Dubai’s Drydocks has an outstanding loan of $2.2bn Talks between Drydocks, Dubai World’s shipyard arm, and its creditors about the refinancing of a $2.2bn loan have stalled over whether the Dubai government will guarantee the new loans, sources familiar with the situation said.

Drydocks is a ship-building and repair company based in Dubai and owned by Dubai World, which in turn is controlled by the government of Dubai. Earlier this year, Dubai World finalised a $25bn debt restructuring that didn’t include Drydocks.

At the heart of the ongoing negotiations between Drydocks and its lenders lies the government’s willingness to put a guarantee on the table, a key demand by bankers who have been seeking more explicit government support for large-scale restructurings, especially in the light of Dubai’s recent debt troubles.

* username: rupertbu