UEA: Drydocks World Confirms, Restructuring Remains on Track

Following on from Drydocks World Dubai LLC and Drydocks World LLC (together the Drydocks World – Dubai) filing for Decree 57 on 1 April 2012, Drydocks World has confirmed that its restructuring remains on track and has the support of its lenders to its restructuring proposals by Q3 2012.

Although Drydocks World Dubai today notified its Creditors and members that it has requested an adjournment of the Decree 57 Directions Hearing scheduled to take place in the DIFC on the 7th May 2012 the adjournment will only lead to a short delay in the process.

The adjournment was requested to allow Drydocks World Dubai and its syndicated facility lenders the additional short period of time required to finalise the complex suite of financial documentation necessary to support the Group’s CVA proposal.

Khamis Juma Buamim, Chairman of Drydocks World and Maritime World confirmed:

“Since the Group’s filing on 1 April 2012, the Group has continued to progress its restructuring with its lenders and has made further significant progress in concluding all matters. Nevertheless, a few points remain outstanding. The business has concluded that taking the short period of time required to close off these few matters is in the long term interests of the business, its trading partners and its employees. As you may recall, Drydocks World Dubai’s use of Decree 57 was not a step the business took lightly. Despite today’s adjournment, Decree 57 remains a pragmatic and sensible solution to conclude the Group’s financial restructuring in the near term and the short delay should not have any material impact on the business or its operations. Our lenders remain fully supportive of our restructuring proposals and the Group retains the necessary level of support required to effect its restructuring proposals under the Decree 57 rules and the inter-related Singapore Scheme of Arrangement. For the Group’s many trading partners and its employees who have understandably sought certainty over the Group’s financial future, Decree 57 provides Drydocks World – Dubai with the best possible opportunity of achieving that goal.”

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Shipbuilding Tribune Staff, May 8, 2012