Dubai: Drake and Scull (DSI), which reported a massive 2018 loss resulting in negative equity, expressed confidence in its restructuring plans and negotiate with banks and help restore operations.
DSI has been in the eye of storm after the company posted a fourfold jump in net loss in 2018, thereby eroding its equity. The auditor also made stinging accusations that the company withheld information and were not given access to PwC’s working papers to review the opening balances in the statement of accounts.
“The current management stressed that it will fully perform its duties to protect shareholders’ rights, strive to prosecute previous management and take all
necessary measures to transform Drake & Scull into a successful company with achievable returns to all shareholders,” DSI said in a statement posted on Dubai Financial Market’s website.
Shares remained suspended on the DFM since February. The stock has shed 69 per cent in the past one year, compared to a 5 per cent decline on the Dubai Financial Market general index.
The company said the investigations were ongoing with the public prosecutor on the offences committed by the management since the company went to the primary market along with the acquisitions made by them.
The company said that “deliberate actions of previous management, violations and mismanagement in project pricing, assessment, management and completion, within and outside the UAE, led to an accumulation of expenses, debts and legal cases”.