Singapore High Court hears Dubai World ship repair unit failed to pay $4.7m in debts owed to four firms
Two Singapore units of Drydocks World, the ship repair unit of state-owned Dubai World, which is attempting to restructure $24.9bn of debt, were sued in Singapore’s High Court for not paying suppliers.
Drydocks World Singapore and Labroy Shipbuilding & Engineering, failed to pay S$6m ($4.7m) for goods sold and delivered between May and December, according to four complaints filed with the Singapore High Court. The cases had their first closed hearing Wednesday.
Drydocks refused repeated requests to pay Beng Hui Marine Electrical, Hoe Seng Huat and Z-Power Automation, according to the lawsuits of the Singapore-based suppliers.
The Dubai state-owned company hasn’t filed a defense to the lawsuits. Drydocks’s lawyer Arthur Yap of Tan Kok Quan Partnership declined to comment.
Sumaya Tahlak, a Dubai-based Drydocks spokeswoman, didn’t return four calls to her mobile phone and didn’t respond to an email seeking comment.
The ship repair unit of Dubai World in January said it will enter talks with its lenders to restructure a $2bn loan and get long-term working capital.
Dubai World, one of the emirate’s three main state-owned holding companies, roiled credit markets in November 2009 when it sought to delay payments on debt.
The company will sign a deal to restructure its debt within a week, chairman Sheikh Ahmed bin Saeed Al Maktoum said on March 9.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
After hearing on the radio this morning that Dubai World will meet all its debt obligations this year you have to question what is going on....in the grand scheme of things $4.7 million US is nothing, so why hasnt it been paid?
When you cannot honor 4.7 Million usd then whats the guarantee u are going to meet your debt obligations this coming year?