The use of formal bankruptcy procedures by Drydocks World (DDW), Dubai's shipbuilding and repair business that ran into US$2.2 billion of debt problems, has been heralded as a brave new world in the emirate's treatment of corporate insolvency.
Let's hope so. The application of the Decree 57 rules, originally intended to deal with any fallouts from Dubai World's $24.9bn (Dh91.45bn) restructuring in 2009, is certainly a step forward, and DDW is the first to test the water in this controversial area.
It has gained the agreement of 97.5 per cent of its creditors to restructuring proposals. DDW is a sound cash-generating business that made the same mistake as so many others by borrowing too much in the good times. Good luck to it, I say.
No comments:
Post a Comment