Gulf Navigation investor will attempt to improve its fortunes

Integrated Capital has increased its stake in Dubai’s Gulf Navigation and plans to “seek dialogue” with stakeholders to turn the troubled company around.

The capital markets arm of investment firm Abu Dhabi Financial Group purchased 28.61m shares in the shipping company, raising its shareholding to 5.19%. The size of Integrated Capital’s previous stake in Gulf Navigation was not disclosed.

Gulf Navigation had AED 641.8m ($174.7m) in liabilities at the end of June and “was in breach of specified covenants with its lenders”, according to a statement released earlier this month.

The Dubai-listed company is in talks with creditors to resolve its debt issues, in spite of having posted improvements in earnings and revenue in both the first and second quarters this year.

Gulf Navigation, which has flirted with bankruptcy in recent years, this month received board approval to issue Bermuda’s Nordic American Tankers (NAT) with mandatory convertible bonds with a face value of AED 37.34m ($10.2m) as full and final settlement for claims made by the creditor.