Dubai’s Shuaa Capital, an asset management and investment banking platform, has completed a debt buyout of Stanford Marine’s AED 1.13 billion ($308 million) facility, saving 1,800 jobs in the process and $20 million worth of vessel exports.
Stanford Marine is an offshore services company in the Middle East, with a focus on chartering, building and repairing offshore support vessels for the oil and gas industry.
Since 2019, Shuaa Capital has been working with Stanford Marine’s lending syndicate and its advisors to arrive at a buyout deal that met all parties’ objectives.
The restructuring strengthens Stanford Marine’s liquidity position, the asset manager said in a statement on Sunday.
According to Shuaa Capital, the restructuring transaction has also helped save more than 1,800 jobs and annual exports of close to $20 million worth of vessels made in the Grandweld shipyard’s facility in Dubai Maritime City.
Jassim Alseddiqi , CEO of Shuaa Capital, said: “Despite the COVID-19 lockdowns last year, we continued to lead discussions with the SMG lenders’ advisors and worked collaboratively to reflect the changing needs of the consortium while finding a viable solution that worked in the best interest of all parties involved.
“We are proud to have achieved so much with this deal – from supporting banks to exit a distressed debt situation with a cash recovery, to retaining jobs for over 1,800 employees and sailors and sustaining their livelihoods, and finally ensuring continuity of SMG business and its contribution to the local economy.
“We believe this to be one of the few restructuring transactions in recent times to successfully address all stakeholder needs and we hope that this will serve as a template for further such transactions”.
Elias Nassif , CEO of Stanford Marine Group, said: “Shuaa Capital has managed to pull off a complex restructuring program effectively giving the company a new lease of life”.
This investment is part of the Private Markets activity of Shuaa Capital and is held as a co-investment vehicle.