Dispute holds up Drydocks World hearing



Drydocks World's voluntary bankruptcy was delayed in court yesterday over a complex legal dispute in Singapore concerning a vessel sold by the Dubai shipbuilder to an undisclosed customer.

At the Dubai World Tribunal in the Dubai International Financial Centre Courts, lawyers from Clifford Chance, who were representing Drydocks, asked for an adjournment of bankruptcy proceedings to early next month to allow the dispute in Singapore to unfold.

Drydocks last month filed for insolvency protection at the Dubai World Tribunal to push through its US$2.2 billion (Dh8.08bn) debt restructuring.

The filing was the first time a company had sought protection under Decree 57, which was issued by the Dubai Government in 2009 to deal with disputes related to the debt restructuring of Dubai World, which owns Drydocks.

But the bankruptcy proceedings have been delayed by a dispute in Singapore, where a Drydocks customer is seeking a refund on a vessel, called LT06, and believed to be a drilling rig of some kind.

Drydocks expects to solve the issue in the next few days but the dispute is complicated and involves a number of parties and legal guarantees.

The unidentified customer put in place bank guarantees with three Singapore banks, DBS, UOB an OCBC, and Drydocks when it bought the vessel, to ensure that if any issues with the vessel arose, it could be refunded by the banks.

The customer was unhappy with the rig and has now been repaid. The banks are dealing directly with Drydocks over the legal ownership of the rig. "As the customer pays the money for the vessel … [he] gets a guarantee from a bank that if anything goes wrong, the bank will effectively refund the money … and then the bank has the issue with the company," said Ian Schneider, a partner and leader of business restructuring services at PricewaterhouseCoopers, which is advising Drydocks. "It's a very standard form of financial management. Nothing unusual."

To resolve the situation, Drydocks needs approval from two thirds of its creditors to pass ownership of the vessel to the three Singapore banks, which also need to find another buyer for the vessel.

"The complexity is that this wasn't just a guarantee given out by the South East Asia [Drydocks subsidiary] businesses but it had a parent company guarantee from the Drydocks World," said Mr Schneider. "It has no impact on the operations."

If the situation in Singapore is not resolved, the three banks will be added to the list of affected creditors in the bankruptcy proceedings and the process will be forced through and resumed early next month.

Drydocks first sought a restructuring of its debt in 2010. It is seeking to restructure two bank loans issued in 2008, one valued at $1.7 billion (Dh6.24bn) and the other at $500m.

twitter: Follow and share our breaking business news. Follow us

iPad users can follow our twitterfeed via Flipboard - just search for Ind_Insights on the app.

The Sand Castle

Director: Matty Brown

Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea

Rating: 2.5/5

The Details

Article 15
Produced by: Carnival Cinemas, Zee Studios
Directed by: Anubhav Sinha
Starring: Ayushmann Khurrana, Kumud Mishra, Manoj Pahwa, Sayani Gupta, Zeeshan Ayyub
Our rating: 4/5 

How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

Voy!%20Voy!%20Voy!
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Omar%20Hilal%3Cbr%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Muhammad%20Farrag%2C%20Bayoumi%20Fouad%2C%20Nelly%20Karim%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
The Brutalist

Director: Brady Corbet

Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn

Rating: 3.5/5

How to become a Boglehead

Bogleheads follow simple investing philosophies to build their wealth and live better lives. Just follow these steps.

•   Spend less than you earn and save the rest. You can do this by earning more, or being frugal. Better still, do both.

•   Invest early, invest often. It takes time to grow your wealth on the stock market. The sooner you begin, the better.

•   Choose the right level of risk. Don't gamble by investing in get-rich-quick schemes or high-risk plays. Don't play it too safe, either, by leaving long-term savings in cash.

•   Diversify. Do not keep all your eggs in one basket. Spread your money between different companies, sectors, markets and asset classes such as bonds and property.

•   Keep charges low. The biggest drag on investment performance is all the charges you pay to advisers and active fund managers.

•   Keep it simple. Complexity is your enemy. You can build a balanced, diversified portfolio with just a handful of ETFs.

•   Forget timing the market. Nobody knows where share prices will go next, so don't try to second-guess them.

•   Stick with it. Do not sell up in a market crash. Use the opportunity to invest more at the lower price.

Safety 'top priority' for rival hyperloop company

The chief operating officer of Hyperloop Transportation Technologies, Andres de Leon, said his company's hyperloop technology is “ready” and safe.

He said the company prioritised safety throughout its development and, last year, Munich Re, one of the world's largest reinsurance companies, announced it was ready to insure their technology.

“Our levitation, propulsion, and vacuum technology have all been developed [...] over several decades and have been deployed and tested at full scale,” he said in a statement to The National.

“Only once the system has been certified and approved will it move people,” he said.

HyperloopTT has begun designing and engineering processes for its Abu Dhabi projects and hopes to break ground soon. 

With no delivery date yet announced, Mr de Leon said timelines had to be considered carefully, as government approval, permits, and regulations could create necessary delays.

COMPANY PROFILE

Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed 

Indoor cricket World Cup:
Insportz, Dubai, September 16-23

UAE fixtures:
Men

Saturday, September 16 – 1.45pm, v New Zealand
Sunday, September 17 – 10.30am, v Australia; 3.45pm, v South Africa
Monday, September 18 – 2pm, v England; 7.15pm, v India
Tuesday, September 19 – 12.15pm, v Singapore; 5.30pm, v Sri Lanka
Thursday, September 21 – 2pm v Malaysia
Friday, September 22 – 3.30pm, semi-final
Saturday, September 23 – 3pm, grand final

Women
Saturday, September 16 – 5.15pm, v Australia
Sunday, September 17 – 2pm, v South Africa; 7.15pm, v New Zealand
Monday, September 18 – 5.30pm, v England
Tuesday, September 19 – 10.30am, v New Zealand; 3.45pm, v South Africa
Thursday, September 21 – 12.15pm, v Australia
Friday, September 22 – 1.30pm, semi-final
Saturday, September 23 – 1pm, grand final

How to donate

Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200

 

Manchester City transfers:

OUTS
Pablo Zabaleta, Bacary Sagna, Gael Clichy, Willy Caballero and Jesus Navas (all released)

INS
Ederson (Benfica) £34.7m, Bernardo Silva (Monaco) £43m 

ON THEIR WAY OUT?
Joe Hart, Eliaquim Mangala, Samir Nasri, Wilfried Bony, Fabian Delph, Nolito and Kelechi Iheanacho

ON THEIR WAY IN?
Dani Alves (Juventus), Alexis Sanchez (Arsenal)
 

Habib El Qalb

Assi Al Hallani

(Rotana)