Dubai-based contractor Drake & Scull International (DSI) said Sunday that it is moving forward with the debt restructuring plans.
The company swung to a Q1 net profit of 115 million dirhams ($31.3 million) after posting a net loss of 30 million dirhams a year earlier.
In a disclosure to the Dubai Financial Market, where its shares trade, the mechanical, electrical and plumbing (MEP) contractor said it was able to reduce accumulated losses from 4.9 billion dirhams as of 31 December 2020 to 4.7 billion dirhams.
Revenue also rose 17 percent year-on-year to 46 million dirhams, compared to 39 million dirhams during the same period in 2020.
The company, which has sustained years of losses due to project cancellations and huge debt servicing costs, said its financial restructuring plans are proceeding on track.
DSI’s chairman Shafiq Abdelhamid said creditors will be asked to vote to approve the restructuring plan once they receive the legal documents that ensure compliance with conventional and Islamic shariah requirements.
“When approved by two-thirds (by value) of the creditors, with the support of the FRC, DSI will then approach the Courts to obtain their approval which will bind all creditors and allow the rights issue process to be initiated,” Abdelhamid said.
(Writing by Brinda Darasha; editing by Cleofe Maceda)
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