Dubai – Mubasher: Drake and Scull International (DSI) said that capital reduction is required to avoid the risk of accumulated losses exceeding 50% of its total share capital, according to a bourse statement.
Accumulated losses could lead to a potential suspension and de-listing on the Dubai Financial Market (DFM).
The company’s general assembly meeting discussed the reduction of share capital by the cancelation of 75% of total outstanding shares on a pro-rata basis
The company is significantly overleveraged with a total funded debt of AED 2.65 billion.
DSI explained that insufficient liquidity is affecting delivery of projects and causing significant delays to settling financial obligations, making it more difficult to obtain banking facilities required to bid and secure new work.
