DSI restructuring plan officially completed
FRC notifies the troubled contractor’s senior management that settlements have been reached with its creditors
Drake and Scull International (DSI), the troubled Dubai-based contractor, specialising in the integrated design, engineering and construction disciplines of Mechanical, Electrical and Plumbing (MEP), Water and Power, and Oil and Gas, has announced that the company’s management has been notified by the Financial Reorganisation Committee (FRC) that the restructuring plan has been officially completed.
In a statement, DSI said that with the support of a FRC appointed expert, the company has been able to reach settlements with creditors and thereby achieved the required voting percentage for a consensual agreement, which exceeded two-thirds of the creditors’ claims in terms of the value of the indebtedness.
The company added that as per the procedures and settlements it reached with its creditors, in addition to the adoption of the financial restructuring plan that was initially approved by several of the major lending banks, the financial reorganisation procedures have reached their final stage and are in accordance with the objectives stipulated in FRC’s decision on May 17, 2020, regarding the acceptance of the company’s request submitted to the FRC for the financial restructuring of the company’s debts.
Eng Shafiq Abdelhamid, Chairman of DSI, said: “We are hopeful that Drake & Scull will return to the path of growth and prosperity in the coming years. We look forward to the decision of the Dubai Courts in regard to the submitted application and anticipated completion of the restructuring process.”
The company said that it had previously disclosed the filing of a formal application in Dubai Courts in the third quarter of 2021, requesting the company be subject to restructuring procedures in accordance with the emergency provisions of the UAE Bankruptcy Law.
It confirmed that it will make every effort for its stock to resume being traded on the Dubai Financial Market after the completion of the restructuring plan, followed by obtaining the necessary approvals.
Any developments regarding the resumption of trading will be announced through the official channels promptly, the statement concluded.
