Drake & Scull International has written off debts worth AED4.18bn ($1.1bn) as it completes a restructuring process in Dubai.
Shafiq Abdul Hamid, the Chairman of the Board of Directors of Drake & Scull International LLC, announced the completion of the company’s compliance with all restructuring plan requirements after issuing mandatory convertible sukuk to the Company’s creditors, in accordance with the restructuring plan, for the benefit of the financial and commercial creditors with the debts equivalent or exceeding AED1m ($272,000).
Shafiq Hamid emphasised the company’s completion of all other requirements stipulated in the restructuring plan agreed upon with creditors and approved by the competent courts, which include the company’s success in increasing its new capital by more than AED450m ($123m) and obtaining approval from the Securities and Commodities Authority, writing off financial and commercial debts in full by AED4,181,766,366 ($1.1bn), and issuing the remaining 10 per cent mandatory convertible bonds into shares after five years from the date of issuance.
Drake & Scull in Dubai restructuring
This will enable the company to resume its activities by entering into tenders and obtaining new projects, leading to improving the company’s profitability and increasing its assets and shareholders’ rights.
Additionally, the company has started cash settlements for creditors with debts less than AED1m ($272,000), with a total amount of AED13,604,054 ($3.7m) according to the final list of creditors published on January 30, 2024, under the supervision of the expert appointed by the competent court as a procedures trustee, in addition to any amount adjusted pursuant to objections filed with the court.
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