Dubai: The Dubai based Stanford Marine Group has charted further progress in its turnaround plan, by securing $45 million from National Bank of Fujairah. The marine company has also brought in a new board of directors.
These follow early this year’s rescue act by Shuaa Capital, which acquired the Dh1.13 billion that Stanford was burdened with. The new bank financing is structured as a bilateral facility for a period of around five years. It will be used to support Stanford’s expansion possibilities in the offshore support vessel sector as well as “optimize capital structure”.
This strengthened SMG's liquidity position and helped all lenders exit with a cash recovery.
Following the debt buyout, SMG was "significantly deleveraged with a strong balance sheet and a right-sized business poised for growth".
The restructuring transaction also helped retain more than 1,800 jobs and nearly $20 million worth of annual exports of vessels (Made in UAE) manufactured at the Grandweld shipyard's facility 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, CEO of National Bank of Fujairah. This transaction is a testament to the strong relationship we have with both SMG and SHUAA and aligns with our strong focus on the shipping and offshore support vessel sector.”