Drydocks Secures Lender Support to Restructure $2.2 Billion

Drydocks World LLC, which owns the Middle East’s biggest shipyard in Dubai, said it secured necessary support from lenders to “rapidly” restructure $2.2 billion in debt.

A “small minority” of lenders have yet to confirm their support, the company said in a statement today.

Drydocks plans to repay creditors over five years as part of a debt-restructuring program it submitted March 8. The company is one of several in Dubai seeking to reorganize debt after property prices and asset values slumped in the Persian Gulf business hub and credit markets froze with the onset of the 2008 global credit crisis.

Drydocks borrowed $2.2 billion for two acquisitions in Singapore in 2008 to gain ships and Asian shipbuilding sites.

To contact the reporter on this story: Nayla Razzouk in Dubai at nrazzouk2@bloomberg.net

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net

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