Dubai: The immediate future for engineering firm Drake & Scull International future will be decided by end April.
This is the timeframe by which the company’s creditors would have to give their vote on whether to proceed with a restructuring of the company or not.
The Re-organisation Plan was presented to trade creditors on March 1 at a virtual meeting. These creditors will need to review the Plan documents – to be shared “in due course – and then vote on it by end April or so.
Drake & Scull International presented the Plan in tandem with Aaronite Partners, which was appointed as the expert by the Financial Re-organisation Committee made of past lenders to the company.
It’s not known what the immediate options would be for Drake & Scull if trade creditors do not approve the Plan. Would it mean that the independent expert will have to come up with a reworked plan of action or something much broader?
Drake & Scull’s problems came to light in 2019 after the company said it was suffering from accumulated losses of well over Dh4 billion.