After three years of effort, Drake & Scull managed to get its financial restructuring on track. Image Credit: Gulf News Archive

Dubai: The Dubai engineering firm Drake & Scull International will ‘make all possible efforts’ to get the company’s shares re-listed on DFM as its corporate restructuring efforts make progress. It was in 2018 that trading in DSI shares was halted after failing to report results on time. And then came the revelations about hiding accumulated losses of Dh4 billion plus.

“We are grateful for the patience of our shareholders as we seek to restructure the company thereby protecting as far as possible their investments and the livelihoods of many hundreds of families,” said Shafiq Abdelhamid, Chairman of DSI.

“We have made very significant progress throughout 2021 and as announced on March 7, we have completed the creditor voting process by obtaining the requisite two-thirds percentage required to approve the Plan. This was a significant step in the process of restructuring the company only made possible by valuable support of the Financial Restructuring Committee (FRC) and the many UAE authorities involved in this process.”

Rights issue

If the restructuring proposal is approved, Drake & Scull will then proceed with a rights issue. Having completed the creditors’ voting, our focus now turns to the Court’s approvals required to enable the plan to be implemented,” the Chairman added. “In parallel to the Financial Restructuring Committee process, the company has filed a case in the Dubai Courts seeking approval from the Court for the application to be considered under the Temporary Emergency Provisions of the Bankruptcy Law.

“If accepted under the Emergency Provisions, the Court will review the Plan before approving the restructuring.

“As part of the Court process, we have provided very significant number of documents to support our application. If our application is accepted and the plan is approved by the Court, it will then facilitate the launch of the rights issue to the existing shareholders.”