Drydocks World will treat all lenders equally in its US$2.2 billion (Dh8bn) restructuring, despite one of its creditors obtaining a high court judgement in the United Kingdom against the shipbuilder.
Monarch Alternative Capital, a hedge fund in the United States, last week won a $45.5 million case against Drydocks, which is owned by Dubai World, putting the shipbuilder and repair company's debt restructuring in jeopardy. Drydocks sought a restructuring of its debt in 2010, having overstretched itself with an overseas expansion. Three hedge funds, including Monarch, now own part of its debt.
"We are not going to pay anybody [early]," said Khamis Juma Buamim, the chairman of Drydocks World. "It's going to be part of the $2.2bn restructuring. We are treating all lenders the same. We cannot do something special to one party." Monarch declined to comment.
Mr Buamim said he did not expect the other two hedge funds that own Drydocks' debt to seek legal action in London, where Monarch obtained the court judgement. "I do not think there's a worry about whether they will sue," he said. "All lenders have heard what the company has on the table, including the hedge funds. It's in the benefit of all parties to agree to the restructuring and move on."
Last week, Arcapita, an investment bank based in Bahrain, filed for bankruptcy protection in the US after talks with hedge funds over its $1.1bn debt broke down. Drydocks' proposed new debt deal would enable it to pay off debt over the next five years.
While the Monarch court judgement is not enforceable in the UAE, Monarch could seek to obtain the money it is owed by claiming against Drydocks' assets in countries that have an enforcement treaty with the UK. Singapore, where Drydocks operates an 11-hectare shipyard, has such a treaty with the UK, but because the shipbuilder's subsidiary takes a different name - Drydocks World-Singapore Pte - the judgement might not be enforceable, according to lawyers.
Mr Buamim said Drydocks World was in good health after a difficult couple of years.
It made earnings of $125m before interest and tax last year, and Mr Buamim expects it to reach a similar level this year.
"It compares very positively," he said. "As we know, the business was suffering since 2008. We have seen a remarkable change in the space of one year."
Drydocks is seeking to restructure two bank loans that were issued in 2008, one valued at $1.7bn and the other at $500m.
The $1.7bn loan came due in October, and the $500m loan matures next year. A few weeks ago, Drydocks had injected optimism into the market for refinancing after announcing its restructuring had been all but completed, but the court judgement in London has cast a pall over that.
The shipbuilder is one of a number of Gulf and Dubai Government-related entities restructuring debts this year. Dubai's refinancing needs have been made more worrying, given the weakened lending environment globally linked to the euro-zone sovereign-debt crisis. Two of the largest debt deals maturing this year are the Jebel Ali Free Zone's $2bn Islamic bond, which is due in November, and a $1.25bn sukuk from DIFC Investments in June.
The IMF, Bank of America Merrill Lynch and ratings agencies estimate repayments or refinancings of about $15bn this year.
Dubai's total debt load after the Dubai World restructuring is $119.8bn, according to a Merrill report.
rjones@thenational.ae
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MATCH INFO
Uefa Champions League semi-finals, first leg
Liverpool v Roma
When: April 24, 10.45pm kick-off (UAE)
Where: Anfield, Liverpool
Live: BeIN Sports HD
Second leg: May 2, Stadio Olimpico, Rome
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
Champion%20v%20Champion%20(PFL%20v%20Bellator)
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Sun jukebox
Rufus Thomas, Bear Cat (The Answer to Hound Dog) (1953)
This rip-off of Leiber/Stoller’s early rock stomper brought a lawsuit against Phillips and necessitated Presley’s premature sale to RCA.
Elvis Presley, Mystery Train (1955)
The B-side of Presley’s final single for Sun bops with a drummer-less groove.
Johnny Cash and the Tennessee Two, Folsom Prison Blues (1955)
Originally recorded for Sun, Cash’s signature tune was performed for inmates of the titular prison 13 years later.
Carl Perkins, Blue Suede Shoes (1956)
Within a month of Sun’s February release Elvis had his version out on RCA.
Roy Orbison, Ooby Dooby (1956)
An essential piece of irreverent juvenilia from Orbison.
Jerry Lee Lewis, Great Balls of Fire (1957)
Lee’s trademark anthem is one of the era’s best-remembered – and best-selling – songs.
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
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Illegal%20shipments%20intercepted%20in%20Gulf%20region
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ALRAWABI%20SCHOOL%20FOR%20GIRLS
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The five pillars of Islam
Why does a queen bee feast only on royal jelly?
Some facts about bees:
The queen bee eats only royal jelly, an extraordinary food created by worker bees so she lives much longer
The life cycle of a worker bee is from 40-60 days
A queen bee lives for 3-5 years
This allows her to lay millions of eggs and allows the continuity of the bee colony
About 20,000 honey bees and one queen populate each hive
Honey is packed with vital vitamins, minerals, enzymes, water and anti-oxidants.
Apart from honey, five other products are royal jelly, the special food bees feed their queen
Pollen is their protein source, a super food that is nutritious, rich in amino acids
Beewax is used to construct the combs. Due to its anti-fungal, anti-bacterial elements, it is used in skin treatments
Propolis, a resin-like material produced by bees is used to make hives. It has natural antibiotic qualities so works to sterilize hive, protects from disease, keeps their home free from germs. Also used to treat sores, infection, warts
Bee venom is used by bees to protect themselves. Has anti-inflammatory properties, sometimes used to relieve conditions such as rheumatoid arthritis, nerve and muscle pain
Honey, royal jelly, pollen have health enhancing qualities
The other three products are used for therapeutic purposes
Is beekeeping dangerous?
As long as you deal with bees gently, you will be safe, says Mohammed Al Najeh, who has worked with bees since he was a boy.
“The biggest mistake people make is they panic when they see a bee. They are small but smart creatures. If you move your hand quickly to hit the bees, this is an aggressive action and bees will defend themselves. They can sense the adrenalin in our body. But if we are calm, they are move away.”
Mountain%20Boy
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Under 19 Cricket World Cup, Asia Qualifier
Fixtures
Friday, April 12, Malaysia v UAE
Saturday, April 13, UAE v Nepal
Monday, April 15, UAE v Kuwait
Tuesday, April 16, UAE v Singapore
Thursday, April 18, UAE v Oman
UAE squad
Aryan Lakra (captain), Aaron Benjamin, Akasha Mohammed, Alishan Sharafu, Anand Kumar, Ansh Tandon, Ashwanth Valthapa, Karthik Meiyappan, Mohammed Faraazuddin, Rishab Mukherjee, Niel Lobo, Osama Hassan, Vritya Aravind, Wasi Shah
The specs
Engine: 2.0-litre 4-cylinder turbo
Power: 240hp at 5,500rpm
Torque: 390Nm at 3,000rpm
Transmission: eight-speed auto
Price: from Dh122,745
On sale: now
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Blackpink World Tour [Born Pink] In Cinemas
Starring: Rose, Jisoo, Jennie, Lisa
Directors: Min Geun, Oh Yoon-Dong
Rating: 3/5
UAE currency: the story behind the money in your pockets
Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
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