Drake & Scull International has made significant progress with its long-running restructuring plan though the process is complicated by factors including gaining approvals of a large number of creditors, its chairman said.
The Dubai-based contractor is saddled with debt ranging between Dh7.5 billion to Dh8bn that it inherited from the previous administration, DSI chairman Shafiq Abdelhamid said in an interview with Al Khaleej newspaper on Sunday.
The company's restructuring has taken a long time as it requires the approvals of 44 banks and more than 1,000 other creditors, Mr Abdelhamid told the Arabic-language newspaper. DSI held talks with the four biggest banks, which together represent 40 per cent of the debt its owes, and the discussions have yielded "advanced results," he said, without elaborating.
DSI has struggled following a three-year oil price slump that began in 2014 and, in turn, heavily impacted the property and construction sector in the region. The firm was also hit with allegations of misconduct among its executive management last year, which then prompted the contractor to initiate an internal probe. Its shares on the Dubai Financial Market have been suspended since November 2018 and its last filed accounts for the 2018 financial year show a full-year loss of Dh4.5bn on revenue of Dh798m, leaving the company with negative net equity of almost Dh4.75bn.
The chairman also said the company was able to settle dues owed to some workers and had drafted a plan to pay the rest of its staff, according to the Sharjah-based newspaper.
The company is now paying the salaries of its employees and workers on a regular basis, despite challenging market conditions, Mr Abdelhamid said.
The firm has reduced headcount among non-essential staff, cutting costs, and is therefore able to cover its expenses through its current projects, he said.
DSI is actively working on winning new projects while working on completing current ones, he added.
It is currently finishing existing projects worth more than Dh3bn, including Reem Mall, a contract worth Dh576m.
