Tuesday, Apr 03, 2012
(recasts, adds detail)
DUBAI (Zawya Dow Jones)--Drydocks World hopes to secure the backing of creditors holding 94% of its debt for a $2.2 billion restructuring plan, but doesn't expect to receive support from U.S. hedge fund Monarch Capital, according to an adviser to the Dubai ship-building and repair company.
Ian Schneider, a partner at professional services firm PwC, said that in the absence of unanimous support, Drydocks will still need to proceed with its filing to the Dubai World Tribunal in order to push through the debt restructuring proposal.
Drydocks on Monday said it resorted to court action after some lenders including Monarch Capital opposed the restructuring plan. Drydocks is making use of the Dubai World Tribunal and Decree 57, legislation that was passed in 2009 to deal with disputes related to the restructuring of Dubai World, which owns Drydocks.
Under Decree 57, Drydocks only needs the support of two-thirds of its creditors in order to ratify the debt restructuring plan, which was presented to creditor banks last month after negotiations stretching back to 2010.
"At the moment the value is over 87% and is expected to rise above 94% within a week," Schneider said. He is one of three PwC partners appointed Sunday by Drydocks as nominees for its Decree 57 filing. PwC has also been advising Drydocks on its debt restructuring.
-By Nicolas Parasie, Dow Jones Newswires; +9714 446-1681; nicolas.parasie@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
03-04-12 1409GMT
