#Dubai-listed DSI open for new business after writing off $1.15bln in debts

Dubai-listed DSI open for new business after writing off $1.15bln in debts

Dubai-listed contractor Drake & Scull (DSI) can participate in new bids and secure new projects after writing off AED 4.2 billion ($1.15 billion) of financial and commercial debts.

The write-off of 90% of DSI’s debt follows the announcement of a five-year mandatory convertible sukuk last month for debts equivalent to AED 1 million or more.

The sukuk accounts for the remaining 10% of debts under a restructuring plan which has taken more than five years to complete.

The company, began trading on DFM again on May 29 after a five year suspension.

A bourse filing to Dubai Financial Market (DFM) said after increasing capital by more than AED 300 million, the company can now resume activities including new bids and new projects.

DSI said a Dubai Court approval of the restructuring plan and its implementation has halted all judgments and lawsuits filed by financial and commercial creditors against the company, which are subject to the restructuring process.

Cash settlements have also been initiated for creditors with debts less than AED 1 million totalling AED 13,604,054, adjustable based on objections submitted to the court. DSI itself is still pursuing claims in the courts, the filing concluded.