Dubai: The Dubai engineering firm Drake & Scull International has terminated its contract with Shuaa Capital to advise on the financial restructuring of the company. It was in September 2019 that Shuaa was contracted to come up with a plan of action to help improve the situation after accumulated losses at DSI shot past Dh4 billion.
No reason has been given by Drake & Scull for the latest decision. The company had been improving its situation in the last three quarters, picking up some impressive project wins and also disposing of assets. It was confident that a financial restructuring pact would be reached with lenders shortly.
It is not known whether delays in reaching an agreement on debt restructuring led to the parting of ways with Shuaa. No confirmation has been given on whether a new advisor would be brought in.
A turnaround for Drake & Scull is of vital importance for the local construction and project services market, especially after Arabtec went into liquidation.