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Dubai construction firm DSI to present restructuring plan in January

Dubai - Creditors’ claims to be published in local newspapers by December end

Drake & Scull International (DSI) on Tuesday said it had completed the first phase of restructuring plan related to the creditors’ claims and will present the second phase in January next year.

It had asked all creditors to submit proof forms to register their claims in September to a Financial Reorganization Committee.

The creditors’ claims are under review and will be published in local newspapers by the end of December 2020. The company will share the results with its creditors in January and then have a vote on it. This reflects that the construction firm is making progressing on its restructuring plan.

DSI’s peer Arabtec recently decided to take liquidation route rather than try to float and continue its operations.

DSI reported net profit of Dh129 million for the first nine months ended September 30, 2020 as compared to net loss of Dh1.21 billion for the same period in 2019. For the third quarter, it posted net loss of Dh70 million, mainly resulting from legal and bond provisions compared to net loss of Dh372 million for the same period in 2019

“We would like to inform shareholders that the operations of the company and its subsidiaries are still ongoing and its projects are under execution, especially the project in Abu Dhabi such as Al Reem Mall and contracts for the company's operating in water and energy in many countries,” it said in a statement posted on Dubai Financial Market, where it is listed.

-waheedabbas@khaleejtimes.com