Abu Dhabi Financial Group boosts equity in troubled Gulf Navigation

Abu Dhabi Financial Group has increased its stake in Gulf Navigation to 5.19 per cent and plans to hold “turnaround” talks with the troubled Dubai-based shipping company.

Integrated Capital, the capital markets unit of the alternative investment firm with US$3 billion in assets, bought more than 28.61 million shares.

It did not disclose the size of its equity in Gulf Navigation before the latest investment.


Integrated Capital said it would approach Gulf Navigation shareholders to discuss the company’s turnaround efforts.

The shipping company’s liabilities reached Dh641.8m at the end of June and “was in breach of specified covenants with its lenders”, the company said this month.

Gulf Navigation, which posted an increase in second-quarter earnings and revenue, is in talks with creditors to resolve its debt issues.

Its board this month approved the issuance of mandatory convertible bonds with a total face value of Dh37.34m to settle claims by Bermuda’s Nordic American Tankers.

Gulf Navigation shares closed down 0.9 per cent to Dh0.426 in Dubai on Tuesday.

dalsaadi@thenational.ae

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