Tabarak Investment has injected Dh500 million in Drake & Scull International (DSI) as the Dubai-listed company reported on Tuesday the completion of its capital restructuring program.
“Drake & Scull … has successfully completed its capital restructuring program which started at the beginning of the fiscal year as part of its efforts to improve the financial position of the company and enhance operational efficiency,” the company said in a statement to the Dubai Financial Market.
Under the program, DSI proposed to write off 75 percent of its shares to extinguish Dh1.71 billion in losses, followed by the Dh500 million capital infusion by Tabarak Investment, currently DSI’s biggest investor.
Tabarak Investment recently also extended an interest-free loan of up to Dh100 million to help the Dubai company speed up the delivery of projects.
“With the successful completion of the capital restructuring program, the share capital of the company stands at Dh1.07 billion and the total equity of the group increased by Dh500 million,” DSI Chairman Abdulla Atatreh said in the statement.
“Completing DSI’s recapitalization program is a significant milestone for the company … sets a solid foundation for the group to press ahead with key strategic initiatives to regain business momentum.”
DSI reported a narrower net loss in the second quarter at Dh182.7 million, from Dh207.6 million a year ago, bringing its accumulated losses to Dh1.89 billion as of June 30. The company made Dh68 million in one-off provisions and impairment charges in the second quarter.
DSI’s board of directors last month elected Atatreh as the new chairman, Ahmed Saeed Al-Hamiri as vice chairman and Abdulla Fareed Algurg as new board member.
DSI also announced senior appointments, including Ziad Makhzoumi as board adviser, Muin El Saleh as the new managing director of the company’s UAE operations, Fadi Feghali as new managing director for international operations, Musa Ibrahim as group chief legal officer, Ismail Mohammad as deputy general manager of DSI unit GTCC in the UAE, and Saher Ghazi Kamal as acting managing director for Saudi Arabia.

Source:Arabnews