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Wed 12 Sep 2018 02:09 PM

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Dubai's Drake & Scull plays down 'dissolution' talk

Drake & Scull refutes reports suggesting shareholders will meet later this month to decide whether to dissolve the company

Dubai's Drake & Scull plays down 'dissolution' talk

Dubai construction company Drake & Scull on Wednesday played down reports suggesting shareholders will meet later this month to decide whether to dissolve the company.

Media reports said the company has called a general assembly on September 27 under an article of UAE company law which requires companies to vote on whether they should continue operating if their accumulated losses have reached half of their issued share capital.

However, in a Dubai Financial Market filing, Feras Kalthoum, chief restructuring officer, DSI, insisted the agenda item was "a mere legal requirement".

He added: "It is a procedural step that needs to be taken but doesn't mean that there is an intent to dissolve the company prior to the expiry of its term."

His statement said the executive management of the company is "exerting all its efforts... to safeguard the best interests of all its shareholders and to ensure the seamless operation of the company."

The company posted a second-quarter net loss of AED181.1 million dirhams ($49.3 million) and has been hit by a slump in the regional building industry over the past few years.

It attributed the losses mainly to cost overruns in Oman, Qatar and Jordan, as well as rising debt servicing costs.

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