Monday, May 07, 2012
DUBAI (Zawya Dow Jones)--Drydocks World, a ship-builder owned by government conglomerate Dubai World, is asking for a delay in court hearings related to its $2.2 billion debt restructuring after running into a snafu with its Singapore business.
A hearing was scheduled Monday before the Dubai World Tribunal, a special body set up to handle legal matters connected to Dubai World and its subsidiaries as the parent company underwent a $25 billion debt restructuring.
But a lawyer for Drydocks requested an extension until next month in order to give notice to three creditor banks in Singapore about the proceedings. Those banks became creditors of Drydocks because of a refund guarantee on the construction of a vessel in Singapore.
Drydocks filed a case last month in the tribunal to push through full consent for its restructuring. Most of the company's creditor banks have already agreed to the deal.
Drydocks expects the issues in Singapore to be resolved imminently, said Mark Hyde, a lawyer with Clifford Chance who is representing the company.
"I'm very confident by the time we're next here, this is a problem that will go away," he said.
-By Asa Fitch, Dow Jones Newswires, +971 4 446-1685, asa.fitch@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
07-05-12 0906GMT
