SE Asia creditors of Drydocks World vote for joint venture with Kuok Group to proceed
Background: On 27 June 2012, DDW announced that it had entered into a joint venture agreement with Pacific Carriers Limited ("PCL"), a wholly-owned subsidiary of Kuok (Singapore) Limited. The SEA Group would, following completion of the transaction, be managed as a joint venture between DDW and PCL and would be called DDW-PaxOcean Asia. Pte Ltd. Completion of this transaction was conditional on, amongst other things, the Schemes being approved by the Creditors.
The creditors meeting duly approved the proposed schemes, commenting Khamis Juma Buamim, Chairman of Drydocks World and Maritime World said: “I am pleased with this strong support and overwhelming commitment from our creditors to keep the company sustainable and poised for growth with all its great potentials. We truly value this support and commitment to the company’s strategic thought process and undertaking. Once again I affirm my commitment to our business operations in Singapore and Indonesia and the Joint Venture with Kuok Group,”
The text of DW's announcement in greater detail follows:
Drydocks World LLC (“DDW”) has announced that Drydocks World-Southeast Asia Pte Ltd, Drydocks World-Singapore Pte Ltd, Labroy Marine Pte Ltd, Labroy Shipbuilding and Engineering Pte Ltd, and Labroy Offshore Engineering Pte Ltd (together the "Scheme Companies”) today held meetings of their scheme creditors at which the creditors were asked to vote to approve Schemes of Arrangements pursuant to Section 210 of the Singapore Companies Act (the “Schemes”). The Schemes enable the Scheme Companies to enter into an amendment agreement with the creditors under the Existing Term Loan Facilities Agreement ("ETLFA") to enable the Majority Existing Term Loan Facilities Creditors (the “Creditors”) to consent to the release of the Scheme Companies from their obligations under the ETLFA and thereby facilitate the closing of the joint venture described below.