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The General Assembly of Drake & Scull International, held on Monday, approved the proposals of its Board of Directors aimed at restructuring it and increasing its capital by 600 million UAE dirhams to become approximately 3.470 billion dirhams, by issuing new shares amounting to 2.4 billion shares, where the value of each share is equivalent to one dirham. One issue and the discount price is estimated at 0.75 dirhams.
Thus, the issue price becomes 0.25 dirhams (capital increase). Engineer Shafiq Abdel Hamid, Chairman of the Board of Directors of Drake & Scull International, said, “We have developed a comprehensive plan to restructure the capital that aims to avoid liquidation of the company, ensure the best interests of shareholders, and ensure business continuity, in addition to achieving better returns for creditors compared to the returns that could be achieved.” They will obtain it in the event of its liquidation, and from this standpoint, this step will support the national economy and enhance confidence in the financial market.”
He added: “We still have a long way to go, but we are all determined to restore the position that Drake & Scull enjoys in the construction sector, as the real estate market in the region, especially in the United Arab Emirates, is witnessing steady growth.” According to a statement by the company, its restructuring strategy aims to rebuild confidence in it by focusing on its strengths and points and what it specializes in in the construction sector, such as mechanical and electrical works, integrated works, design and construction, construction project management, and post-delivery operations and maintenance.
It should be noted that 90 percent of liabilities amounting to less than 50 thousand dirhams will be written off, while the remaining 10 percent will be paid in cash, provided that this process is subject to the successful issuance of new shares. 90 percent of the liabilities, which range from 50 thousand dirhams to one million dirhams, will also be written off, and there will be an option to receive 10 percent of the amount in cash through mandatory instruments to convert into shares (all creditors have supported the cash option), while the payment process is in turn subject to the success of the share issuance. New.
As for liabilities whose value exceeds one million dirhams, 90 percent of them will be written off, and the remaining 10 percent will be converted into bonds that are mandatory to be converted into shares.
The terms of the mandatory convertible sukuk stipulate a maturity period of 5 years and are compulsorily convertible into shares in Drake & Scull at maturity or earlier in the event of certain early conversions. They are also not eligible for a fixed profit rate with the right to any… Dividends paid by the company proportionately to the target ownership.
Sukuk holders are expected to receive 35 percent of the issued capital of Drake & Scull, subject to some adjustments. These amendments relate to specific cases, such as the purchase by Drake & Scull of mandatory convertible sukuks during their validity period. The reduction in mandatory convertible bonds due due to the repurchase will result in a proportional reduction in the ownership of the company by its holders.
As for the distributable proceeds, 35 percent (or the adjusted creditor ownership percentage in the mandatory convertible sukuk) will be paid to the sukuk holders as special dividend payments in connection with the settlement of legal claims related to the following:
The Company’s previous management and previous auditors will, as a result of circumstances that arose before December 31, 2017, holders of the Mandatory Convertible Sukuk who sold their Sukuk upon issuance to the Company will not be eligible to receive the distributable proceeds to the extent of their participation. At the same time, holders of the Mandatory Convertible Sukuk who sell their Sukuk will remain eligible. To the issuing company after its issuance and before the shares are transferred, they are eligible to receive the specified share of the distributable proceeds.
Emirates News
2024-04-01 15:23:59
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