Chairman of Drake & Scull: We were able to write off 90% of the debt

The Chairman of the Board of Directors of Drake & Scull, Shafiq Abdel Hamid, revealed that the company succeeded in writing off 90% of the debt and converting 10% into convertible sukuks after 5 years, pointing out that a restructuring plan had been drawn up, capital raised, and stock re-traded.

The Chairman of the Board of Directors of Drake & Scull, listed on the Dubai Financial Market, explained in media statements today, Monday, that increasing capital and providing liquidity will enable the company to expand, make acquisitions of other companies, and take on new projects.

Abdul Hamid stated that the number of criminal cases was 15 pending before the Public Funds Prosecution in Abu Dhabi, and a tripartite committee was formed by the Public Prosecution.

Abdul Hamid pointed out that there are projects worth 440 million dirhams under implementation with a subsidiary in Germany that specializes in providing sanitation and drinking water services and waste-to-energy conversion plants.

He stressed that the company is trying to obtain new projects and we expect them to be implemented within two to three years. He pointed out that the proceeds will be used to settle small claims of creditors and repurchase convertible bonds in the subsequent stage.

Last weekend, Drake & Scull International revealed the details of the restructuring plan and its outcomes, indicating that the feasibility and main indicators of the restructuring will be highlighted during its general assembly meeting, which will be held on April 1 (after a quorum was not achieved at the meeting held on March 27). ).

The company indicated in a statement that the General Assembly will discuss during the meeting a number of important topics related to the future of the company, most notably the issue of financial restructuring and increasing capital to a maximum value of 600 million dirhams.

The Chairman of the Board of Directors of Drake & Scull International confirmed that the restructuring plan includes writing off 90% of the receivables of the financial and commercial creditors and issuing 10% of the receivables of the financial and commercial creditors in the form of mandatory instruments to be converted into shares.

He stressed the importance of shareholders’ participation in this procedure through their attendance at the General Assembly meeting and their vote in favor of the strategic decisions regarding increasing the company’s pivotal capital to return the company’s shares to trading on the Dubai Financial Market, setting the work plan and future outlook for the company’s management, and other major items included in the invitation to the General Assembly to convene. .

Among the most prominent topics that will be included in the assembly’s agenda is reviewing the disclosure statement regarding the procedures and steps the company has taken to restructure its capital, as well as presenting the business plan and the future outlook for its management.

The general assembly will also review the report of the company’s board of directors regarding the capital increase and the uses of its proceeds, which determines the fair value of the company currently and after its debts are written off and approved by the assembly.

The general assembly will also consider approving the resumption of trading in the company's shares once subscription to the capital increase shares is completed.