Dubai World division committed to financial restructuring

21/10/2011 00:00 AST

DryDocks World, the shipbuilding division of Dubai World, has said it is committed to complete the financial restructuring of the company in shortest possible time.

In a statement to Khaleej Times, the Dubai-based firm regrets that one of its creditors has decided to take a legal action against the company for un-clear reasons.

The New York-based investment firm Monarch Alternative Capital LP on October 6 filed a claim of about $45.5 million in London High Court against Drydocks World LLC.

“It is regrettable that this one lender alone has decided for un-clear reasons to take legal action. The company is currently considering its formal response,” DryDocks World said in an e-mail statement to Khaleej Times.

DryDocks World has been in talks for months to win new terms to restructure a $2.2 billion loan facility taken in October 2008. The loan comprises a $1.7 billion three-year loan and a five-year $500 million loan. An estimated $1.7 billion is due as soon as next month.

“The company is working diligently with its core coordinating committee and all other lenders to finalise a consensual financial restructuring in the shortest possible time. The company from inception affirmed its commitment to reach an amicable and viable restructuring that will maximise all returns,” the statement said. Monarch couldn’t be reached for comment.

Business development efforts

The Dubai-based ship and rig builder said it is examining its marketing and business development efforts to suit current market scenarios in various segments to improve productivity targets and complete the projects on schedule.

“While focusing on concluding a financial restructuring, the company is simultaneously concentrating on re-focusing its global marketing and business development strategies to suit current market scenarios in various segments. It is also highly focused on continuous improvement on productivity targets and completing all projects at hand on schedule,” the company said.

DryDocks World, which operates one of the world’s largest shipyards in Dubai, continues to do good overhaul business in Dubai. It builds and repairs a variety of cargo ships, tankers and oil drilling rigs. It also owns shipyards in Singapore and Indonesia.

Chairman of Drydocks World Khamis Juma Buamin told Khaleej Times early this year that he was quite optimistic about the company in 2011 with 18 projects in hands. “We expect that 2011 will be a fruitful year for Drydocks as it has strong orders in hands to deliver,” Buamim said.

Khaleej Times