Dubai: The Dubai-based Stanford Marine Group has shown further progress in its recovery plan by securing $ 45 million from Fujairah National Bank. The marine company also introduced a new board. This follows the early rescue operation by Shuaa Capital, which obtained the Dh1.13 billion with which Stanford was taxed. The new bank financing was established as a bilateral facility for about five years. It will be used to support Stanford’s expansion opportunities in the foreign support vessels sector, as well as to optimize the capital structure.
Shuaa’s debt buyout In January, Shuaa settled a discounted debt buyout of the Dh1.13 billion debt of Stanford Marine Group, which led to a successful outcome for all stakeholders, including the participating banks. This strengthened SMG’s liquidity position and helped to leave all borrowers with a cash recovery. Following the debt buyout, SMG was “significantly pulled down with a strong balance sheet and a right-sized business ready to grow”. The restructuring transaction also helped retain more than 1,800 jobs and the annual export of nearly $ 20 million of vessels (Made in UAE) manufactured at the Grandweld site in Dubai Maritime City. “We understand SMG’s business model and recognize the company’s potential to support the UAE’s ambitions to become a shipping hub in the region,” said Vince Cook, chief executive of the National Bank of Fujairah. This transaction is a testament to the strong relationship we have with both SMG and SHUAA, and is in line with our strong focus on the shipping and foreign support vessel sector. ”