Dubai’s Drake & Scull appoints advisors after posting Dhs500m Q3 loss

Dubai contractor Drake Drake & Scull (DSI) reported a net loss of Dhs498m ($135.5m) in the third quarter as it appointed new advisors for its restructuring efforts.

The announcement comes after shareholders rejected a resolution to dissolve the company last month following a second-quarter net loss of Dhs181.1m ($49.3m).

Read: Dubai’s Drake and Scull shareholders decide not to dissolve the company

DSI said on Wednesday it had appointed Trussbridge Advisory as financial advisors for a new restructuring plan and Deloitte to advise on the development of a new business plan, according to Reuters.

However, trading of the company’s shares on the Dubai Financial Market was temporarily suspended after it failed to submit the results of its board meeting to regulators.

Earlier this year, it was reported by Bloomberg that the former CEO of DSI, Khaldoun Al Tabari, and his daughter owed the company up to Dhs1bn ($272.3m).

DSI also issued a bourse statement confirming the “existence of material financial violations from the previous management”.

It said the violations are under investigation by UAE authorities.

However, Tabari strongly refuted the claims, and warned of legal action against those spreading “unfounded allegations”.

Also read: Ex-CEO of UAE’s Drake and Scull denies wrongdoing, warns of legal action

Drake & Scull has been hit by a slowdown in the regional construction sector over the past few years.