Sunday 21 July 2024

Drake & Scull writes off $1.12bn; restructuring plan on track

DUBAI, June 10, 2024

Drake & Skull International, a leading contracting and engineering company, has announced the completion of the company's compliance with all restructuring plan requirements after issuing mandatory convertible sukuk to the company’s creditors.
The restructuring plan was agreed upon with creditors and approved by the competent courts, said a statement from Drake & Skull International.
Under this, the company will obtain approval from the Securities and Commodities Authority (SCA) to write off financial and commercial debts worth AED4.18 billion ($1.12 billion) and then increase its new capital by more than AED450 million ($122.4 million).
The plans also include issuing of the remaining 10% mandatory convertible bonds into shares after five years from the date of issuance, it added.
Unveiling the restructuring plan, Shafiq Hamid, the Chairman of the Board of Directors of Drake & Skull International, said this is mainly for the benefit of the financial and commercial creditors with the debts equivalent or exceeding AED1 million.
It will enable the company to resume its activities by entering into tenders and obtaining new projects, leading to improving the company's profitability and increasing its assets and shareholders' rights,  stated Hamid.
"Additionally, the company has started cash settlements for creditors with debts less than AED1 million, with a total amount of AED13.6 million as per the final list of creditors published on January 30, 2024, under the supervision of the expert appointed by the competent court as a procedures trustee, in addition to any amount adjusted pursuant to objections filed with the court," he added.-TradeArabia News Service


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