Drake & Scull International Completes Major Restructuring, Writes Off AED 4.18 Billion in Debts
Drake & Scull International PJSC has announced the successful completion of its restructuring plan, including the write-off of AED 4.18 billion in financial and commercial debts. This marks a significant milestone for the company, signaling a new chapter in its operational and financial journey.
Summary
Drake & Scull International PJSC has successfully completed its restructuring plan, which includes writing off AED 4.18 billion in debts. The company issued mandatory convertible sukuk to its creditors and increased its capital by more than AED 300 million, meeting all requirements set by the courts and financial authorities.
Drake & Scull International PJSC (DSI), a prominent player in the UAE's construction and engineering sectors, has reached a significant milestone in its corporate journey. The company announced the successful completion of its comprehensive restructuring plan, which includes the write-off of AED 4.18 billion in financial and commercial debts. This development follows the issuance of mandatory convertible sukuk to the company’s creditors, as per the restructuring plan approved by the competent courts.
In a press release dated June 10, 2024, DSI confirmed that it has fulfilled all obligations outlined in the restructuring plan. This includes the issuance of mandatory convertible sukuk to creditors holding debts equivalent to or exceeding AED 1 million. The successful implementation of this plan has not only alleviated the company’s debt burden but also paved the way for a stronger financial footing.
The restructuring plan also involved a significant capital increase, exceeding the minimum required amount of AED 300 million. This move was crucial in meeting the requirements set by the restructuring agreement and gaining approval from the Securities and Commodities Authority. The capital increase reflects the company’s commitment to restoring financial stability and enhancing shareholder value.
The completion of the restructuring plan marks a new chapter for DSI. The company, which has been a regional market leader in delivering high-quality projects across various sectors including General Contracting, Mechanical, Electrical and Plumbing (MEP), Water and Power, Rail, Water and Wastewater Treatment, Waste to Energy, and Oil and Gas, can now focus on its core business operations with renewed vigor.
Given the successful execution of the restructuring plan and the substantial reduction in debt, DSI is well-positioned to capitalize on new opportunities in the market. The company’s ability to navigate through financial challenges and emerge stronger is a testament to its resilience and strategic foresight.
For investors, the completion of the restructuring plan is a positive signal. The significant debt reduction and capital increase enhance the company’s financial health, making it a more attractive investment. The focus on core business operations and potential for new projects further strengthens its market position.
In conclusion, the successful restructuring of Drake & Scull International PJSC is a noteworthy development that underscores the company’s commitment to financial stability and growth. With a stronger balance sheet and a clear strategic direction, DSI is poised for a promising future.
Source
Summary
On June 10, 2024, Drake & Scull International PJSC announced the completion of its restructuring plan, which included the write-off of 4,181,744,366 dirhams of financial and commercial debts. This was achieved through the issuance of mandatory convertible sukuk to the company's creditors, as per the court's decision and the restructuring plan. The company has fulfilled all obligations outlined in the restructuring plan, including increasing its capital by more than the minimum required 300 million dirhams. The restructuring plan was agreed upon with financial and commercial creditors and approved by the competent courts, and the company has received approval from the Securities and Commodities Authority.
