Dubai: The engineering services firm Drake & Scull International is bringing in external restructuring advisers, as part of a strategy to restore operations and “stabilise the business”.
These advisers will work with the restructuring committee set up recently to work on the turnaround.
The independent advisers include Trussbridge Advisory (DIFC) Ltd., appointed as financial adviser for the restructuring; Allen & Overy as legal adviser; Al Tamimi & Company as regulatory adviser; and Deloitte to advice on the development of a new business plan.
Drake & Scull’s board of directors had last month approved the formation of a restructuring committee, after shareholders voted by special resolution at the general assembly to continue operations.
At the end of 2018’s third quarter, the company had a net loss of Dh498 million. The operating loss is “attributable to the final phase of the close-out and handover of the company’s legacy projects”, the company said in a statement. The restructuring programme includes the reassessment of all current and legacy projects.
“In light of this reassessment, several legacy projects which are due to be closed-out and handed-over could lead to further potential losses in the fourth quarter 2018”, the statement added.
It added that it is “pursuing measures to accelerate bidding and secure new projects”. It is submitting proposals for “carefully selected projects, predominantly in the UAE, with several [fully financed] projects due to sign in the coming months”.
Yousef Al Mulla, group CEO, said: “The appointment of an experienced restructuring advisory team is an important step as we move forward with our financial and operational restructuring plan. That team, working with our newly formed Restructuring Committee, will not shy away from taking the tough decisions necessary to refocus the business and restore the company to financial health.”