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Troubled Dubai contractor DSI allays 'dissolution' fears

Drake and Scull has moved to allay fears it's shareholders will meet to discuss dissolving the troubled contractor

Drake and Scull has played down claims its shareholders will meet to dissolve the company.
Drake and Scull has played down claims its shareholders will meet to dissolve the company.

Dubai construction contractor Drake and Scull (DSI) has plunged into fresh turmoil after being forced to quash claims that its shareholders will meet this month to discuss dissolving the firm.

DSI said its senior management team, hit by upheaval after the appointment of chief executive officer Yousef Al Mulla last monthwas "exerting all of its efforts" to "safeguard" the company.

The contractor said its reference to dissolving the company in a filing on the Dubai Financial Market was "a mere legal requirement"  that does not mean "there is an intent to dissolve the company".

READ: Khaldoun Al Tabari denies wrongdoing at Dubai's Drake & Scull

On 12 September, 2018, DSI's board of directors invited shareholders to attend its annual general meeting on 27 September in Dubai. Its agenda set out plans for a "special resolution" on dissolving the firm.

It came after the firm announced more restructuring plans its its half-year 2018 financial results, after reporting a loss of $49.8m (AED183m), following cost overruns for non-performing subsidiary in markets such as Oman.

In the same statement, DSI confirmed the appointment of Yousef Al Mulla as its new group chief executive officer, just five months after Dr Fadi Feghali stepped into the role at the end of March.

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Construction Week - Issue 745
Jun 30, 2019