PwC partners appointed Nominees in first application for Decree No.57 restructuring

Ian Schneider, Tony Lomas and Steven Pearson, Partners at PwC, were appointed on Sunday April 1^st, 2012, as joint nominees to Drydocks World Dubai LLC and Drydocks World LLC (together ‘Drydocks World - Dubai’) under Decree No 57 for 2009. 

PwC has been advising the wider Drydocks World group on the restructuring of its debt in Dubai and South East Asia and its Decree filing in Dubai. Ian Schneider, Nominee and PwC Partner and Business Restructuring Services Middle East Leader, commented: 

“Decree 57 is new and ground breaking legislation in Dubai which draws on best practices from restructuring focused regimes around the world, predominantly the UK and USA. We believe Decree 57 could become the model and standard bearer for practical restructuring reform in the Middle East. 

For Drydocks World - Dubai, a Decree 57 filing is a pragmatic and sensible decision. It protects the majority of its creditors from the actions of a very small minority who had not agreed to its strongly supported restructuring proposals. All stakeholders can benefit from the implementation of these proposals. The significant support Drydocks World - Dubai has for its proposals should enable it to rapidly implement its debt restructuring. Once implemented, the business should be well placed to progress its strategic ambitions, secure in the knowledge that it is on a firm financial footing." 

The Government of Dubai developed Decree No. 57 to permit Dubai World and its subsidiaries to effect a restructuring.  The Group has the support of a significant majority of its lenders for its voluntary proposal, but could not be certain of securing the 100% support required to implement its plans successfully. Consequently, Drydocks World - Dubai has taken this step in order to ensure it has the best possible chance of successfully implementing its voluntary restructuring proposal.  It is targeting completion during Q3 2012. 

This process will have no effect upon the on-going operations of Drydocks World - Dubai, its clients, suppliers or employees.  It will be business as usual during the process and going forward once the restructuring is effective.  The filing is helpful to the Group’s many clients who have understandably sought certainty over the Group’s financial future.  Decree 57 provides Drydocks World - Dubai with the best possible opportunity of finally achieving that in the near term.