Deloitte recognised on landmark Dubai World restructuring
Deloitte Reorganisation Services Partners Aidan Birkett and Jason Armstrong have been recognised by the Institute for Turnaround for their leading roles on the successful restructuring of Dubai World (DW). DW is an international conglomerate encompassing real estate development, private equity, ship building and repair and port and free zone operations.
Download our Dubai World Case Study (PDF, 112 KB)
Deloitte have won the following awards for their work with Dubai World:
Aidan Birkett won 2010 Turnaround Professional of the year for his role as the CRO of Dubai World where he took the lead in driving the restructuring of the Group and its key subsidiaries (Nakheel, Limitless and Dry Docks World). Aidan is the only repeat winner of this award.
Jason Armstrong won the 2010 Rising Star award also for his role on the Dubai World restructuring assignment.
|Dubai World won the Acquisitions Monthly Restructuring Deal of the Year 2011.|
Our work with Dubai World
Dubai World expanded rapidly from its Dubai based operations in the mid 2000’s through a series of debt financed international acquisitions as well as through gearing its substantial land bank. DW shocked world financial markets in November 2009 when it announced it was seeking a six month ‘standstill’ on c.$25bn of debt obligations. At the same time DW announced the appointment of Deloitte’s Aidan Birkett as Chief Restructuring Officer (CRO).
A dedicated Deloitte partner team led by Aidan Birkett including Jason Armstrong, David Stark, Ian Devlin and Jas Sahota worked closely with the Government of Dubai’s Financial Support Fund, DW management and a number of DW subsidiaries to develop and implement a comprehensive operational and financial restructuring plan which was accepted by 100% of DW creditors in October 2010. Key elements of the agreement were as follows:
- Separation and c.$7bn government backed recapitalisation of Nakheel, the Group’s Dubai based real estate developer;
- $1.5bn of new government funding to DW;
- Development of an asset realisation plan to repay lenders over a period of up to 8 years both allowing lenders to maintain their ‘par’ claims and providing time for DW to rebuild value;
- New DW debt facilities designed to give lenders a choice between greater downside protection (with a Government of Dubai guarantee) or higher returns; and
- Comprehensive proactive PR strategy developed to communicate key developments to wider stakeholders and markets in general thereby improving underlying confidence the wider economy.
This transaction represents a significant milestone as DW is the first (and by far the largest) of the Dubai Government Related Entities (GRE’s) that are expected to go through some form of debt refinancing over the next twelve to eighteen months. The transaction is expected to close in early 2011.
For more information or to discuss any of the details above please contact:
Partner, Reorganisation Services
0207 007 2684