Drake and Scull in talks with banks on restructuring
Drake and Scull (DSI) said that it is currently in talks with key stakeholders, including banks, in a possible step to partly repay its debt over the next four years
Dubai-based construction company Drake and Scull (DSI) said that it is currently in talks with key stakeholders, including banks, in a possible step to partly repay its debt over the next four years.
The company made a statement to the Dubai Bourse on Tuesday that it was in talks with a number of entities, including banks, creditors, and other financial institutions across the region, Gulf News reported.
These steps are part of a capital restructuring plan announced earlier this year to turnaround financial performance as DSI has seen its profits dwindle, recording a net loss of $214.4m (AED787.5m) in 2016.
The company announced in February that several strategic measures were being implemented to stabilise the business in preparation for a new phase of financial and operational recovery.
DSI said in a statement: “The company would like to clarify that as part of the ongoing capital restructuring programme initiated in [the first quarter of] 2017, the management holds continuously several executive meetings and discussions with key stakeholders including but not limited to banks, creditors, and other financial institutions across the region.”
The statement comes after a Reuters report this week cited unnamed banking sources who said DSI expects to have nearly $272m (AED1bn) of cashflow available over the next four years to partly repay its debt.
The company said however that it could not publicly disclose any forward-looking guidance with regards to financial performance and did not give further details on the meetings.
Wael Allan, CEO of DSI, told Construction Week earlier this year that the losses recorded in 2016 were largely the result of historic challenges, and not reflective of the contractor’s current performance.
DSI is currently providing a number of MEP services for a range of high-profile projects in the UAE, including Louvre Abu Dhabi, UAE Presidential Palace, The Address Residence Fountain Views, and Al Habtoor City.