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Drake & Scull International's chairman resigns

Majid Saif Al Ghurair has resigned from his position as chairman of the board of directors at Drake & Scull International

Majid Saif Al Ghurair has resigned from his position as chairman of the board of directors at Drake & Scull International (DSI).

In a statement issued to Dubai Financial Market (DFM), the UAE-headquartered contractor said that Al Ghurair’s departure was due to personal reasons.

Commenting in the missive, DSI stated: “We would like to inform you that Mr Majid Saif Al Ghurair, the chairman of the board of directors, resigned today from the chairmanship and membership of the board of directors of the company for personal reasons.”

DSI added that it would elect a new chairman during the upcoming meeting of its board of directors.

Al Ghurair is the latest in a string of high-profile departures from the company. In August 2017, DSI terminated the services of its former chief executive officer, Wael Allan, and accepted the resignation of several board members, including that of former executive vice chairman, Khaldoun Al Tabari.

In Q2 2017, the company recorded a $54.2m (AED199m) net loss, which it attributed to $18.5m (AED68m) of additional one-off provisions and impairment charges undertaken during the period. This figure represented a 12% year-on-year improvement compared to the $61.5m (AED226m) net loss recorded during the corresponding period of 2016.

READ: Drake & Scull sacks CEO following $54.2m Q2 2017 net loss

In a missive issued to DFM in August, DSI stated that its capital restructuring programme was “steaming ahead on schedule”. Feras Kalthoum, acting chief financial officer, added: “Our efforts to complete the capital and debt restructuring of the group, coupled with continued balancing of our portfolio to mitigate any contingent exposure that may impact our future profitability, will soon reflect positively on our financial performance and top-line targets.”

Earlier during the same month, DSI secured an interest-free qard al-hasan loan of up to $27.2m (AED100m) from Tabarak Investment. The loan was used to meet the firm’s immediate working capital requirements as it completed Phase 1 of its capital restructuring programme.

Tabarak Investment is currently DSI’s largest shareholder.

As of 30 June, 2017, DSI’s order backlog stood at $1.8bn (AED6.6bn).

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