Shuaa Capital says it has completed a debt buyout of Dubai offshore vessel operator Stanford Marine Group’s (SMG) AED 1.13bn ($308m) facility.
The UAE-based asset manager said it has been working with SMG’s lending syndicate and their advisors to arrive at a buyout deal that “met all parties’ objectives” since 2019.
“The restructuring strengthens SMG's liquidity position and results in a successful outcome for all parties involved, including the participating banks,” Shuaa Capital said.
SMG, a diversified offshore services company, focuses on chartering, building and repairing offshore support vessels for the oil and gas industry.
“The restructuring transaction has helped save more than 1,800 jobs, and annual exports of close to $20m worth of vessels made at Grandweld shipyard facility in Dubai Maritime City,” Shuaa Capital said.
Jassim Alseddiqi, chief executive of Shuaa Capital, said: “Despite the Covid-19 lockdowns last year, we continued to lead discussions with the SMG lenders’ advisors and worked collaboratively to reflect the changing needs of the consortium while finding a viable solution that worked in the best interest of all parties involved.
“We are proud to have achieved so much with this deal - from supporting banks to exit a distressed debt situation with a cash recovery, to retaining jobs and finally ensuring continuity of SMG’s business and its contribution to the local economy.”
Elias Nassif, chief executive of SMG, said: “Shuaa Capital has managed to pull off a complex restructuring program effectively giving the company a new lease of life.
“We are excited and hopeful of our future growth under the direction of a world-class management team and with the strong support of our employees and shareholders.”
Shuaa Capital said the investment was “part of its private markets activity” and is held as a co-investment vehicle.
The company said the investment is expected to generate management fees and performance fees, in addition to the investment return on its principal investment position.
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.
The firm's debt problems stemmed from a $325m Islamic loan provided by a group of banks agreed in 2015, reported Reuters.
It currently has a fleet of around 40 vessels worth around $87m according to on-line valuations platform VesselsValue.
