Shuaa-led consortium buys out AED1.13bn debt of SMG

DUBAI/January 10-2021: SHUAA Capital, the leading asset management and investment banking platform in the region on Sunday has successfully completed a debt buyout of Stanford Marine Group’s AED1.13 billion ($308 million) facility.

SMG is one of the most prominent and diversified offshore services companies in the Middle East, with a focus on chartering, building and repairing offshore support vessels for the oil and gas industry.

Since 2019, SHUAA Capital has been working with SMG’s lending syndicate and their advisors to arrive at a buyout deal that met all parties’ objectives.

A statement from the company said the restructuring strengthened SMG’s liquidity position and that following the debt buyout, SMG is now poised for growth.

The restructuring transaction has also helped save more than 1,800 jobs, and annual exports of close to $20 million worth of (Made in UAE) vessels made in the state-of-the-art Grandweld shipyard’s facility in Dubai Maritime City.

Jassim Alseddiqi (seen in the picture), CEO of SHUAA Capital, said that despite the COVID-19 lockdowns last year, the company 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 believe this to be one of the few restructuring transactions in recent times to successfully address all stakeholder needs and we hope that this will serve as a template for further such transactions,” Alseddiqi said.

Elias Nassif, CEO of Standford Marine Group, 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.”



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