DSI completes restructuring of debt in UAE

dubai — Drake & Scull International (DSI) on Monday said that it has successfully completed the restructuring of its corporate general bank debt in the UAE and has secured new credit lines and working capital facilities for its ongoing and new projects portfolio.

In a statement, the company said it has obtained the support from all its creditors for the restructuring of its corporate general debt in the UAE. The company reached in fourth quarter of 2017 a consensual agreement with nine regional and local banks to refinance Dh566 million comprising 56 per cent of its total corporate general debt standing at Dh1.07 billion as of September, 30 2017.

The tenor and the maturity of the Dh566 million corporate general debt have been extended and re-termed on average for 3 years. Additionally, the company successfully secured under the new term sheets signed on bilateral basis with all respective banks, new credit lines and working capital facilities for its ongoing and future projects portfolio in the UAE.

The remaining tranche of the company’s corporate general debt comprising the Dh440 million sukuk will mature in November 2019. The company will initiate talks with its sukuk holders to refinance this tranche in the second half of the fiscal year 2018.

As of September 30, 2017, the total bank debt of the group stands at Dh2.92 billion. Corporate general debt and projects debt comprise 34 per cent and 66 per cent of total bank debt, respectively.

Rabih Abou Diwan, investor relations director, DSI, said the latest deal with the banks reflects the confidence in the DSI turnaround plan, the resilience of the group’s business model and the positive outlook of the company in the MEP sector, despite the cyclical challenges that impacted the regional construction industry.

“Our main objective is to drive a consensual restructuring plan with all our creditors across the region to rebalance our capital structure to be more efficient and conducive for our business plan and future prospects.”

Another upcoming strategic priority of the company’s plan include the restructuring and refinancing of its projects debt with the initial focus on approximately Dh1 billion of funded projects debt in Saudi Arabia. “The completion of our debt restructuring in the UAE will enable us to accelerate projects performance and delivery in Dubai and Abu Dhabi. This represents a key priority for the Group as we continue to streamline the business and unlock value across all operating segments,” Dewan said.

— business@khaleejtimes.com