Getting out of the financial pit will be a hard slog for Drake & Scull International. A deal with banks would help. Image Credit: Gulf News Archive

Dubai: All creditors to the financially ailing engineering company, Drake & Scull International, have to submit their claims with the recently formed Financial Reorganisation Committee. They have to do so by September 30.

Once these are submitted, Drake & Scull International will try and arrive at a consensus deal via an out-of-court settlement.

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This is a “significant step forward and an important part of the broader plan to reorganize the company,” the Dubai-headquartered firm said. “Given the impact of the pandemic, DSI with the support of its advisers have reviewed the company’s long-term business plan so that it remains robust in the current environment.

“The business plan has been approved by the board of directors… and discussions with a group of key lenders are ongoing to finalise the framework and details of the financial reorganization.”

Another change of guard

It was last week that Drake & Scull International, which last year reported accumulated losses of Dh5 billion plus, announced a new CEO – its sixth in the last two years. The move had come as a complete surprise to those who had been watching the company’s turnaround moves.

But the new CEO, Munir Masour, has more than “40 years of industrial and contracting experience in the UAE,” the company said. He had stints as managing director of Tarimans Group, as well as general manager of Emirates Glass.

Joining him in the management team is Peter Lalor as Chief Financial Officer. He had earlier held a similar position at Al Naboodah’s international business division.

“The company was in search of a strong executive team to lead at this important stage,” DSI added.

“After a thorough search, we are delighted Munir and Peter have agreed to join,” said Shafiq Abdul Hamid, Chairman of DSI. “”They join us at a critical time as we proceed with finalizing the organizational and financial reorganization plan.”

A lot to do

They certainly have much to handle in their in trays. It was earlier this year that DSI made the formal application for a financial reorganization under the UAE Bankruptcy Law.

The application was accepted in May, and in June, the FRC appointed Aaronite Partners as the reorganization expert. “This acceptance marks a significant development towards achieving a successful financial reorganization of DSI,” the company added. “The FRC’s role is to facilitate… through consensual agreement with DSI’s creditors in an out-of-court process.”

We are confident their (Munir and Peter’s) extensive experience and highly relevant skillsets will enable us to re-establish DSI as a leading MEP contractor

- Shafiq Abdul Hamid, Chairman of Drake & Scull International