Drydocks has set up a committee to thrash out an agreement for the restructuring of its $2.2bn debt pile. The firm missed a payment deadline for a $1.7bn three-year loan facility that it took in October 2008. It also has another five-year $500m facility on the restructuring table.
But a potential debt accord may be hampered by a large portion of the loans getting offloaded by banks to hedge funds in secondary market deals. The loans last exchanged hands at 49 cents to the dollar in September, one secondary market loans trader said. “Some of the lending bank consortium members have sold to international hedge funds.”