Monarch Unlikely To Accept Dubai Debt Deal

Apr 4 2012 | 2:28am ET

Dubai's Drydocks World is moving forward with its debt restructuring plans in the face of determined opposition from one hedge fund creditor.

The subsidiary of Dubai World, which is owned by the emirate's government, has asked a special tribunal to approve its US$2.2 billion debt plan. Under a 2009 law designed to protect state-owned entities from creditors, the tribunal—made up of three judges from the U.K. and Singapore—can force a settlement if it has the backing of creditors holding 75% of the debt in question.

Drydocks World already has the support of 87% of creditors, a figure expected to rise to 94% within a week. But don't expect Monarch Alternative Capital to be among the assenters.

The U.S. hedge fund, which last month won a US$72 million verdict against Drydocks World in a British court, probably won't go along, one of Drydocks' three nominees to oversee its debt plan, said.

"I remain skeptical that Monarch will agree to the deal," PricewaterhouseCoopers' Ian Schneider said. Monarch has accused Drydocks of defaulting on a loan.

Still, Schneider said, the deal could be completed by early July. Under Drydocks' plan, the maturities on the loans would be extended by five years.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.