Drake & Scull was not able to comply with reporting requirements requested by its lenders for a conditional waiver valid until the end of 2016
DUBAI, March 30 (Reuters) - Dubai-based building company Drake & Scull said it breached financial covenants in relation to a sukuk syndicated facility and other bank facilities in 2016 after having incurred losses last year.
The company incurred an annual loss 815.3 million dirhams ($222.01 million) last year as low oil prices and an economic slowdown hit the construction sector in the Gulf region, the company said in its consolidated financial results.
Drake & Scull was not able to comply with reporting requirements requested by its lenders for a conditional waiver valid until the end of 2016, and therefore, breached financial covenants on the sukuk and other debt facilities.
These loans are now overdue on their principal and interest payments, and they are technically payable on demand, the company said. ($1 = 3.6724 UAE dirham)
(Reporting by Davide Barbuscia; Editing by Subhranshu Sahu) ((Davide.Barbuscia@thomsonreuters.com;))