Monday, 26 March 2012

Drydocks to treat all lenders equally despite court setback - The National

Drydocks World will treat all lenders equally in its US$2.2 billion (Dh8bn) restructuring, despite one of its creditors obtaining a high court judgement in the United Kingdom against the shipbuilder.

Monarch Alternative Capital, a hedge fund in the United States, last week won a $45.5 million case against Drydocks, which is owned by Dubai World, putting the shipbuilder and repair company's debt restructuring in jeopardy. Drydocks sought a restructuring of its debt in 2010, having overstretched itself with an overseas expansion. Three hedge funds, including Monarch, now own part of its debt.

"We are not going to pay anybody [early]," said Khamis Juma Buamim, the chairman of Drydocks World. "It's going to be part of the $2.2bn restructuring. We are treating all lenders the same. We cannot do something special to one party." Monarch declined to comment.

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