Drake & Scull sets up committee with banks to come up with 'lasting solution'

Dubai: A committee has been set up by Drake & Scull International (DSI), which includes banks that have lent money to the struggling firm, to go through its “obligations and to find solutions,” the company said in a statement.

Any such solution come up by the committee will “support the continuity of operations and portfolio of investments.”

Meanwhile, the troubled engineering firm also promised full cooperation with an external audit team that will oversee all of its financial reporting in recent years. This committee was formed by the regulator, the Emirates Securities & Commodities Authority, on Thursday last.

It came into being after DSI reported Dh5 billion plus in losses, as well as a Dh4 billion and more gap between its liabilities and total assets as of end 2018. In a follow-up statement, DSI spoke about multiple internal investigations of its own against former board of directors and senior executives. A statement mentioned that these findings were submitted to the UAE Public Prosecutor, and that it was awaiting action from the authority.

In the latest statement, DSI said: “The company echoed that the announcement of 2018 results is part of its commitment towards its shareholders, investors and financial markets; and solidifies its commitment to transparency, responsibility and governance in line with the restructuring plan that was approved in the general assembly meeting that was held on April 8, 2019. The company thanks ESCA for its efforts and support for the restructuring plan which has already started.”

Meanwhile, it remains to be seen whether the shareholders’ meeting called for on May 7 will go ahead as planned. The board is to submit a restructuring plan, which includes issuing a sukuk.