Dubai – Mubasher: Drake & Scull International’s (DSI) general assembly has approved a restructuring plan.
The restructuring plan will apply to 4 entities; Drake & Scull International PJSC, Drake & Scull International LLC, Drake & Scull Engineering LLC, and Drake & Scull for Contracting Oil & Gas Fields Facilities LLC, according to a press release.
The company’s shareholders also approved increasing capital by AED 600 million to AED 3.47 billion by issuing 2.4 billion shares at AED 0.25 per share.
Shafiq Abdelhamid, Chairman of DSI, said: “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.”
“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,” Abdelhamid added.
He noted: "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."
Debt Write-off
Creditors of the four restructured entities, including both financial and trade creditors, have agreed to write off 90% of their claims.
The remaining 10% will turned into a mandatory convertible sukuk (MCS) for a certain creditor segment, while there will be cash payment options for others.
The MCS will be issued for five years and will be converted into Drake & Scull shares at maturity or an earlier date.
It is worth noting that the net losses attributable to the owners of DSI grew to AED 352.11 million in 2023 from AED 224.39 million a year earlier.
