SMG creditors in talks with buyers
Creditors of Stanford Marine Group (SMG), which has links to troubled private equity firm Abraaj, are in talks with three potential buyers, sources familiar with the matter say.
Banks are overseeing control of Dubai-based SMG after it failed to meet the terms of its debt obligations due to financial stress linked to a steep fall in chartering rates, the sources said.
SMG, which operates offshore supply vessels that service the oil and gas industry, is 51 percent owned by a fund managed by Abraaj. Dubai-based Abraaj filed for provisional liquidation in June after a row with investors over the use of their money in a $1 billion healthcare fund. Abraaj denies any wrongdoing.
With Abraaj’s future uncertain, SMG’s creditors are likely to remain in the driving seat for the time being, the sources said.
A source close to Abu Dhabibased Waha Capital, which owns the remaining 49 percent share in SMG, said Waha was “maintaining a dialogue with the banks.”
“SMG, like many other companies in the industry, is in discussion with its financiers with respect to its existing financing facilities,” SMG said in a statement to Reuters. “SMG’s financiers and shareholders continue to be supportive of the business and its management and look forward to continued future success.” (RTRS)