Dubai’s Drake and Scull chairman resigns from board

Struggling Dubai contractor Drake and Scull International (DSI) announced on Tuesday that its chairman Obaid Bin Touq has resigned from his membership in the board of directors.

Bin Touq was appointed as DSI’s chairman late last year after his predecessor Abdulla Atatreh resigned.

The reason for his resignation was not revealed.

In a bourse statement on Tuesday, DSI also said that board member Khamis Buamim had resigned from his role.

The company said the board of directors will elect “new members soon”.

Dubai-listed DSI, hit hard by the construction slowdown in the region, has seen several leadership changes as it seeks to restructure operations.

Last last month, the company fired group CEO Tawfiq Abu Soud, group CFO Khaled Jarrar and group chief legal officer Mohamed Ghanem.

Read: Dubai contractor Drake & Scull fires CEO, CFO as restructuring continues

Abu Soud had only been appointed as the CEO in January this year, taking over from Yousef Al Mulla.

Read: Dubai contractor Drake & Scull appoints new group CEO

“The day to day business of the company will be managed by an executive committee which will consist of three executive managers till the appointment of a new group CEO and group CFO,” the company said at the time.

On Monday, the company confirmed that it is being investigated by UAE regulator the Emirates Securities and Commodities Authority.

“[With ] reference to the announcement by the Emirates Securities & Commodities Authority (ESCA) of forming an audit committee to investigate Drake & Scull’s and examine the financial statements, the management said that it welcomes this decision and reaffirms its continued commitment to fully cooperate in this regard and in any matter that benefits the company and its shareholders,” DSI said in a statement.

It also confirmed that a committee with banks has been formed to look into the company’s obligations and to find solutions that support the continuity of operations and portfolio of investments.

In November, DSI appointed Trussbridge Advisors (DIFC), Allen & Overy, Al Tamimi & Company, and Deloitte as joint-advisors to work on a restructuring plan for the firm.

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

DSI posted a net loss of Dhs4.5bn for 218, widening from Dhs1.18bn in 2017.