DSI receives AED100mn loan from Tabarak for restructuring
Dubai-based contractor, Drake & Scull International (DSI), has announced that it will receive an interest-free ‘Qard Hasan’ loan of up to AED100mn from Tabarak Investment as part of its capital restructuring program.
The loan will help meet the immediate working capital requirements of DSI until it completes its capital restructuring program which includes a capital increase of AED500mn to expedite Tabarak Investment’s entry as a strategic investor.
The withdrawal and payment mechanisms of the loan will be mutually agreed upon by the two parties and could be implemented in tranches.
Mohammad Atatreh, board member, DSI, said: “The extension of this loan from Tabarak Investment will ensure business continuity particularly by addressing our immediate working capital requirements under the initial phase of our capital restructuring program. We appreciate Tabarak’s full support as we realign the company towards long-term financial stability and profitability.”
Wael Allan, CEO, DSI, said: “Tabarak Investment’s loan is a key development that will further ensure the success of our efforts to direct DSI towards a new period of financial and operational success. We assure our stakeholders that our program is proceeding according to plan and will soon position us for further growth.”
Ahmed Kilani, CEO, Tabarak Investment, said: “Our loan is intended to ensure that DSI’s restructuring program proceeds as smoothly and as swiftly as possible. We are fully committed to sustaining the company’s industry leadership and pursuing a mutually beneficial future.”
Phase 1 of DSI’s capital restructuring program is currently underway and will see the company’s capital officially reduced by 75% within a few weeks, according to a statement on Dubai Financial Market. The loan from Tabarak will bridge DSI’s working capital requirements and improve its liquidity position as it positions itself to win new project awards.