UAE's SHUAA Capital buys out Stanford Marine's debt as part of restructuring

Dubai

A CONSORTIUM led by United Arab Emirates financial firm SHUAA Capital has bought 1.13 billion dirhams (S$408 million) of debt held by Stanford Marine Group (SMG) as part of its restructuring, the companies said on Sunday.

Dubai-based marine services firm SMG has struggled since the collapse in oil prices in 2015, which led to a dramatic fall in chartering rates and a drying up of projects.

"Since 2019, SHUAA Capital has been working with SMG's lending syndicate and their advisers to arrive at a buyout deal that met all parties' objectives. The restructuring strengthens SMG's liquidity position," SHUAA and SMG said in a joint statement.

The plan has helped save more than 1,800 jobs and annual exports of close to US$20 million worth of vessels, the companies said, adding that the debt buyout has supported banks in exiting a distressed debt situation with a cash recovery.

The firm's debt problems stemmed from a US$325 million Islamic loan agreed in 2015 provided by a group of banks including Noor Bank - which has since been acquired by Dubai Islamic Bank - Barwa Bank, Ajman Bank, United Arab Bank, Qatar Islamic Bank, and First Gulf Bank - now part of First Abu Dhabi Bank. REUTERS