The Dubai engineering firm Drake & Scull International plans to make efforts in getting its shares re-listed on DFM as a result of corporate restructuring efforts in making 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 the 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.
Therefore, they stated that as part of the Court process, they have provided a significant number of documents in support of their application. Furthermore, if the application gets accepted, it could facilitate the launch of the rights issue to their existing shareholders.
