Drydocks seeks court protection

Dubai's shipyard operator, Drydocks World, said on Monday it had filed a claim with a special tribunal set up in the emirate to allow restructuring after it failed to secure the backing of all its creditors.

Dubai established the tribunal in 2009, under Decree 57, to allow the restructuring of its Dubai World conglomerate and subsidiaries.

Drydocks World's debt is reportedly around $2.2 billion.

The company said in a statement that it had secured approval by a "significant majority" of its syndicated lenders for a voluntary restructuring proposal it put forward on March 8, but "a small minority have yet to confirm their support."

"We take this step to protect the interests of the vast majority of the Group's syndicated lenders, the clients, suppliers and wider stakeholders who continue to support the business throughout its restructuring," said Drydocks World chairman Khamis Juma Buamim.

"Decree 57 provides the group and its supportive stakeholders, clients and suppliers with its opportunity to finally close the chapter on the last few years dominated by its restructuring," said the statement.

The decree was introduced to allow Dubai World subsidiaries that did not secure 100 per cent backing of their lenders to implement their restructuring.

Drydocks World operates facilities in the Middle East and Southeast Asia, including four shipyards in Singapore, Graha, Nanindah and Pertama.

It said its performance in 2011 was beyond expectations, with unaudited before-interest and tax earnings being 65 percent above forecasts. It said it won contracts valued at $255 million since the beginning of this year.

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