Amwal Al Ghad - 2012-09-04 09:07:13
HSBC Holdings Plc (HSBA) and BNP Paribas SA (BNP) are among banks extending a $1.5 billion so-called profit participating loan to Dubai-based Drydocks World LLC as it restructures debt, a person with knowledge of the talks said.
The 15-year loan, part of a $2.25 billion debt restructuring for the Middle East’s biggest shipyard, will pay creditors profit or cash from asset sales, said the person, who asked not to be identified because details are private. Dubai World-controlled Drydocks also agreed on a new $800 million five-year term loan paying a market interest rate, he said.
A special court in Dubai sanctioned the debt restructuring on Aug. 28 after creditors approved the plan, without providing the terms of the deal. The Dubai World Tribunal, set up in 2009 to handle claims against Dubai World and its subsidiaries, approved the restructuring after 97.8 percent of Drydocks’s creditors agreed. The tribunal can enforce a restructuring proposal if at least two-thirds of the creditors agree.
A Dubai-based spokeswoman for Drydocks, who asked not to be identified because of company policy, declined to comment. A spokesman for HSBC in Dubai and a spokeswoman for BNP Paribas in Manama, Bahrain, both of whom also asked not to be identified because of company policy, also declined to comment. More»