Mohammad Atatreh resigns from board of loss-hit DSI
DSI shares are barred from trading on Dubai Financial Market amid ongoing restructuring efforts
Mohammad Atatreh has resigned from the board of Drake & Scull International (DSI), the latest senior management change that comes two weeks after the troubled contractor's shares were barred from trading amid ongoing restructuring efforts.
In a letter to Dubai Financial Market (DFM), where the contractor's shares are traded, DSI said Atatreh left his position as board member "for personal reasons" with effect from 28 November, 2018.
“The chairman of the [board] thanks [Atratreh] for his efforts during the tenure of his membership and the company would like to confirm [it will] elect a new [board] member in [its] upcoming meeting,” added board secretary Fadi Saba in the Dubai bourse missive on 29 November.
It is unclear who will fill the vacant seat following his departure, with DSI unavailable to comment in time for publication.
Atatreh, regarded as a seasoned UAE entrepreneur, became a DSI board member in July 2017, replacing Khalaf Sultan Al Daheri at the time, who resigned from his seat. Two months later saw the board appoint Atatreh as DSI’s managing director, among a string of other senior appointments, including Abdulla Atatreh as the new chairman; independent member Ahmed Saeed Al Hamiri as vice chairman; and Abdulla Fareed Algurg as a new member. It is yet unclear whether Atatreh will continue to serve as managing director.
After a challenging year for DSI, exemplified by its half-year 2018 financials when the firm reported a $49.8m (AED183m) loss, it was forced to quash claims in September that its shareholders were meeting that month to discuss dissolving the company.
DSI shares were barred from trading on 14 November after it announced the appointment of external restructuring advisors.
In a company notification dated 20 November, DSI said it is in “continuous communication and operation with [DFM] and the Securities and Commodities Authority to lift the suspension on the trading of [DSI] shares once the ongoing operational and financial restructuring plan is approved”.
“[DSI] will continue to deliver on its projects as well as pursue ongoing measures to accelerate bidding and secure new projects,” the firm added.