PRESS RELEASE : BY DSI ON NOV 01, 2023
Dubai, UAE, November 1, 2023: Drake & Scull International PJSC (DSI), a prominent player in the integrated design, engineering, and construction sectors, particularly in Mechanical, Electrical, and Plumbing (MEP), Water and Power, and Oil and Gas, has announced significant developments regarding the restructuring of the Company and its subsidiaries.
In an update disclosed to the Dubai Financial Market (“DFM”), DSI revealed the Court of Appeal’s decision issued on Tuesday, November 1, 2023. The key points of the decision are as follows:
- Approval of Restructuring Plan: The Court has approved the Company’s restructuring plan, which was agreed upon by the Company and endorsed by the majority of its creditors. Additionally, the Court appointed an expert to oversee the restructuring procedures and mandated the publication of procedures in local newspapers. Unregistered creditors have a 20-day period from the date of publication to register their names, after which a final list of all creditors and their debt amounts will be determined.
- Implementation Period: DSI and its subsidiaries have been granted a 12-month period to implement the restructuring plan, commencing from the date of determining the final list of creditors. This period may be extended depending on the progress of the restructuring procedures and the prevailing circumstances.
- Cessation of Judicial Procedures: The Court’s ruling includes the cessation of all judicial procedures against the Company and its subsidiaries, as well as the halting of all execution procedures against them.
The approved restructuring plan, backed by the majority of creditors, involves the write-off of 90% of the Company’s debts. It also includes measures to raise the Company’s capital to bolster its financial position and ensure the restoration and sustainability of its commercial and operational activities.
Engr. Shafiq Abdelhamid, Chairman of DSI, expressed his satisfaction with the Court of Appeal’s decision, emphasizing the commitment of the Board to work diligently to restore the rights of shareholders affected by previous management decisions. He affirmed the Company’s intention to pursue legal action against the previous management to seek compensation for damages incurred.
Abdelhamid further noted that upon fulfilling all conditions of the restructuring plan, DSI will collaborate with the Securities and Commodities Authority and the Dubai Financial Market to resume trading of its shares as soon as possible. Additionally, efforts will be made to raise the Company’s capital in line with the restructuring plan during the first quarter of 2024.
The Chairman extended his gratitude to shareholders for their patience, as well as to all parties and individuals involved in achieving this significant milestone. He specifically thanked regulatory authorities, the Financial Reorganization Committee, restructuring experts, and legal and financial advisors for their contributions. He concluded by expressing appreciation for the dedication of DSI employees throughout this process.
