Wednesday, August 9, 2017

Drake & Scull gets $27.2m loan from Tabarak

Drake & Scull International, a regional market leader in engineering and related services, has announced that it will receive an interest-free Qard Hasan loan of up to Dh100 million ($27.2 million) from Tabarak Investment as part of DSI’s capital restructuring programme.

The loan will help meet the immediate working capital requirements of DSI until it completes its capital restructuring programme which includes a capital increase of Dh500 million to expedite Tabarak Investment’s entry as a strategic investor, a statement said.

The withdrawal and payment mechanisms of the loan will be mutually agreed upon by the two parties and could be implemented in tranches, said the statement.

Mohammad Atatreh, board member, Drake & Scull International, added: “The extension of this loan from Tabarak Investment will ensure business continuity particularly by addressing our immediate working capital requirements under the initial phase of our capital restructuring program. We appreciate Tabarak’s full support as we realign the company towards long-term financial stability and profitability.”

Wael Allan, CEO, Drake & Scull International, said: “Tabarak Investment’s loan is a key development that will further ensure the success of our efforts to direct DSI towards a new period of financial and operational success. We assure our stakeholders that our program is proceeding according to plan and will soon position us for further growth.”

Ahmed Kilani, CEO, Tabarak Investment, said: “Our loan is intended to ensure that DSI’s restructuring programme proceeds as smoothly and as swiftly as possible. We are fully committed to sustaining the company’s industry leadership and pursuing a mutually beneficial future.”

Phase 1 of DSI’s capital restructuring programme is currently under way and will see the company’s capital officially reduced by 75 per cent within a few weeks. The loan from Tabarak will bridge DSI’s working capital requirements and improve its liquidity position as it positions itself to win new project awards, it said. – TradeArabia News Service

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