DUBAI (Reuters) - A U.S.-based hedge fund said it has won a legal claim against Dubai’s Drydocks World for defaulting on a loan, putting the ship builder’s $2.2 billion debt restructuring in further trouble.
Monarch Alternative Capital said in an emailed statement that Drydocks, a unit of Dubai World DBWLD.UL, has been ordered to pay the entirety of the sum of £45.5 million ($71.6 million) claimed plus Monarch’s legal costs.
“We are pleased with the judgment and fully confident in our position,” a Monarch spokesperson said in an emailed statement.
Khamis Juma Buamim, Drydocks World chairman, when asked how the judgment would affect its restructuring, said:
“As made clear at all lender meetings, the company is confident that it can still implement its restructuring if it transpires that Monarch do not accept the terms on offer.”
“But I would very much hope that notwithstanding their legal action Monarch will accept the very reasonable restructuring proposal.”
Reporting by Praveen Menon and Mirna Sleiman, Editing by Matt Smith