Drake & Scull finalizes restructuring, issues mandatory sukuk
The Chairman of the Board of Directors of Drake & Skull International LLC, Engineer Shafiq Abdul Hamid, announced the completion of the company’s compliance with all restructuring plan requirements after issuing mandatory convertible sukuk to the company’s creditors by the restructuring plan for the benefit of financial and commercial creditors with debts equivalent to or exceeding AED 1 million.
Engineer Shafiq emphasized 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 450 million dirhams and obtaining approval from the Securities and Commodities Authority, writing off financial and commercial debts in full by (4,181,766,366) dirhams, and issuing the remaining 10% mandatory convertible bonds into shares after five years from the date of issuance.
These accomplishments pave the way for the company to swiftly resume its operations, participate in tenders, and secure new projects. This strategic move will enhance the company’s profitability, increase its assets, and strengthen shareholders’ rights.
Furthermore, the company has initiated the process of cash settlements for creditors with debts less than one million dirhams, amounting to a total of (13,604,054) million dirhams. This action, in accordance with the final list of creditors published on January 30, 2024, is being overseen by an expert appointed by the competent court as a procedures trustee, with any adjustments made in response to objections filed with the court.
It is worth mentioning that Drake & Skull International LLC has numerous claims in the market that it seeks to collect through direct settlements or litigation through competent courts. Recently, Drake & Skull Engineering, one of the subsidiaries of Drake & Skull International LLC, won a court judgment in its favour issued by the Court of Appeal in favour of the company, obligating one of the major companies in Dubai to pay an amount of (36,715,677) million dirhams and fees, interest, and expenses. The company has begun taking the necessary measures to execute the award, noting that this amount includes bank guarantees.
