Monday, June 29, 2015

Drydocks World Creditors Anticipate Debt Restructuring Plans


Mon., June 29, 2015
Bank creditors to Drydocks World (DDW), Dubai’s maritime engineering business, are expecting to receive proposals from the government-owned company to restructure some of the US$2.3 billion debt it refinanced in 2012, The National reported. Recent talks with creditors have left them convinced that the company, owned by the Dubai World conglomerate, will seek to change the terms of its agreement to repay some $800 million of bank loans in the summer of 2017. “We’re fully expecting a second round of restructuring, but there have been no formal proposals yet,” said one banking executive, speaking on condition of anonymity. A spokesman for DDW declined to comment on the possibility of a new round of restructuring. A source close to the company, who asked not to be named, said that a new deal on the $800m of debt would be a sensible option for the company to consider, given the global environment of lower interest rates than when the previous deal was hammered out, and the emirate’s improved economic prospects.

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