The shareholders of Dubai contractor Drake & Scull International (DSI) have approved board resolutions concerning the company’s future, including the financial restructuring plan and increasing the share capital by Dh600 million to become about Dh3.47 billion.
The company will issue 2.4 billion shares at Dh0.25 per share.
The Dubai-based contractor obtained the green light to resume trading its shares on the Dubai Financial Market (DFM) after agreeing to write off 90% of the financial and trade creditors’ dues and increase the company share capital by no less than Dh300 million at 25 fils per share, as per the court-approved restructuring plan.
“We went through a long, arduous, and challenging journey that we overcame together and worked side by side to restore the company to its leadership position in the market,” said Eng. Shafiq Abdelhamid, Chairman of the Board of Drake & Scull International PJSC.
“We have developed a comprehensive capital restructuring plan aimed at avoiding the liquidation of the company, ensuring the best interests of shareholders, ensuring business continuity, in addition to achieving better returns for creditors compared to the returns they could obtain in the event of its liquidation.”
He added: “We still have a long way to go, but we are all determined to restore the solid position that Drake & Scull enjoys in the construction sector, as the real estate market in the region, especially in the United Arab Emirates, is witnessing steady growth.”
Drake & Scull’s restructuring strategy will be applicable to 4 entities:
- Drake & Scull International PJSC
- Drake & Scull International LLC
- Drake & Scull Engineering LLC
- Drake & Scull for Contracting Oil & Gas Fields Facilities LLC
The creditors of the four companies, including both financial and trade creditors, have agreed to a 90% write-off of their claims. Meanwhile, the remaining 10% balance of plan creditors whose total claims exceed Dh1 million will be exchanged by a mandatory convertible sukuk.
Plan creditors whose balance is between Dh50,000 and Dh1 million will have the option to receive cash or MCS, while those with a balance of less than Dh50,000 will receive 10% of their balance in cash.
