الرئيسية
Drydocks eyeing payment extension of 5-8 years
* No financial support sought from Dubai govt
* Company eyes joint ventures for Southeast Asia business
(Adds background, analyst quote)
DUBAI, Dec 20 (Reuters) - Drydocks World, a unit of
Dubai World, expects to complete its long-delayed
debt restructuring by the end of March 2012 and hopes joint
ventures in Asia will provide it with much needed finance, its
chairman said on Tuesday.
The shipping firm is looking to extend debt repayments for
between five and eight years, Khamis Juma Buamim said. That
timeframe would be similar to the restructuring deal reached by
parent Dubai World with its creditors last year.
"We are not asking for government support. I'm not saying we
don't need it. There are always other avenues to get support,"
Buamim told reporters on the sidelines of an event in Dubai.
The shipbuilding unit of Dubai World is not regarded as a
strategic asset by Dubai, meaning it has had to negotiate its
own debt solution.
It is eyeing joint ventures for its southeast Asia business,
Buamim said, which could be sold off later to prospective
partners if they proved to be successful.
"We are having a lot of discussion on this. International
companies came forward for a joint venture. We are very
hopeful," he said. "The (ship) yards would be owned by us
initially but if it's successful they would want ownership
rights."
But he said the company would not want to sell a majority
stake in the operations.
Buamim said he expected the company's profits to grow by
about 15 percent next year.
DEBT DEAL BY MARCH
Drydocks World's debts stem from a multibillion-dollar loan
which it took out to fund its expansion in Singapore. Drydocks
has its major ship and rig building facilities in southeast
Asian countries such as Singapore and Indonesia.
The $2.2 billion facility, taken out in October 2008,
comprised a $1.7 billion three-year loan paying 170 basis points
and a five-year $500 million loan with a 190 basis points
margin, according to Thomson Reuters data.
The firm is now hoping to have a restructuring deal in place
by the end of March, with debt repayments extended for between
five and eight years, Buamim said.
"We are looking at continuing on the interest (payments) we
have previously agreed on," he added.
The proposed timeframe would be similar to the $25 billion
restructuring deal reached by parent Dubai World with its
creditors, which extended its debt repayments through new five
and eight-year facilities with reduced margins.
As part of the agreement, Dubai World got $9.3 billion of
new capital from the Dubai authorities to assist its
restructuring.
Drydocks World's restructuring has been going on for a
number of months. Buamim told Reuters in August that a deal
would not be reached this year, having initially targeted April
2011 for the agreement.
Chavan Bhogaita, head of the markets strategy unit at
National Bank of Abu Dhabi, said a Drydocks debt deal by March
would be positive for the emirate, already under scrutiny over
looming high-profile debt maturities in 2012.
Dubai was hit hard by the global financial crisis, which
sent property prices slumping by more than 50 percent and forced
several state-owned entities to restructure their debts.
"Investors may also be looking to the Drydocks situation as
a barometer by which to gauge the banks' willingness to
cooperate with Dubai Inc entities...," Bhogaita said.
* No financial support sought from Dubai govt
* Company eyes joint ventures for Southeast Asia business
(Adds background, analyst quote)
DUBAI, Dec 20 (Reuters) - Drydocks World, a unit of
Dubai World, expects to complete its long-delayed
debt restructuring by the end of March 2012 and hopes joint
ventures in Asia will provide it with much needed finance, its
chairman said on Tuesday.
The shipping firm is looking to extend debt repayments for
between five and eight years, Khamis Juma Buamim said. That
timeframe would be similar to the restructuring deal reached by
parent Dubai World with its creditors last year.
"We are not asking for government support. I'm not saying we
don't need it. There are always other avenues to get support,"
Buamim told reporters on the sidelines of an event in Dubai.
The shipbuilding unit of Dubai World is not regarded as a
strategic asset by Dubai, meaning it has had to negotiate its
own debt solution.
It is eyeing joint ventures for its southeast Asia business,
Buamim said, which could be sold off later to prospective
partners if they proved to be successful.
"We are having a lot of discussion on this. International
companies came forward for a joint venture. We are very
hopeful," he said. "The (ship) yards would be owned by us
initially but if it's successful they would want ownership
rights."
But he said the company would not want to sell a majority
stake in the operations.
Buamim said he expected the company's profits to grow by
about 15 percent next year.
DEBT DEAL BY MARCH
Drydocks World's debts stem from a multibillion-dollar loan
which it took out to fund its expansion in Singapore. Drydocks
has its major ship and rig building facilities in southeast
Asian countries such as Singapore and Indonesia.
The $2.2 billion facility, taken out in October 2008,
comprised a $1.7 billion three-year loan paying 170 basis points
and a five-year $500 million loan with a 190 basis points
margin, according to Thomson Reuters data.
The firm is now hoping to have a restructuring deal in place
by the end of March, with debt repayments extended for between
five and eight years, Buamim said.
"We are looking at continuing on the interest (payments) we
have previously agreed on," he added.
The proposed timeframe would be similar to the $25 billion
restructuring deal reached by parent Dubai World with its
creditors, which extended its debt repayments through new five
and eight-year facilities with reduced margins.
As part of the agreement, Dubai World got $9.3 billion of
new capital from the Dubai authorities to assist its
restructuring.
Drydocks World's restructuring has been going on for a
number of months. Buamim told Reuters in August that a deal
would not be reached this year, having initially targeted April
2011 for the agreement.
Chavan Bhogaita, head of the markets strategy unit at
National Bank of Abu Dhabi, said a Drydocks debt deal by March
would be positive for the emirate, already under scrutiny over
looming high-profile debt maturities in 2012.
Dubai was hit hard by the global financial crisis, which
sent property prices slumping by more than 50 percent and forced
several state-owned entities to restructure their debts.
"Investors may also be looking to the Drydocks situation as
a barometer by which to gauge the banks' willingness to
cooperate with Dubai Inc entities...," Bhogaita said.