Court of Appeals affirms Drake & Scull’s reversal

Dubai Financial Market-listed Drake & Scull has announced that the Court of Appeal has issued a ruling approving the company’s restructuring plan, which is in line with the plan agreed by the company and approved by most of its creditors.

Reorganization procedures, publication procedures in local newspapers and setting a deadline of 20 days from the date of publication in local newspapers for unregistered creditors to register their names, after which the final list is drawn up according to disclosure of all creditors and the amount of debt of each of them to the stock market.

It gave the company and its subsidiaries a period of 12 months to implement the restructuring plan, from the date of finalization of the list of creditors, which is extended depending on the progress of the restructuring procedures and the reality of the situation. Time.

The court concluded its ruling by issuing a decision to suspend all judicial proceedings against the company and its subsidiaries and stay the proceedings against the company and its subsidiaries.

The restructuring plan, after the approval of the Court of Appeals, has written off 90% of the company’s debt, raised the company’s capital, and improved its financial solvency to continue and restore its commercial and operational viability. function.

Based on the judgment passed by the Honorable Court approving the restructuring plan, the Company will cooperate with the Securities and Commodities Authority and the Dubai Financial Market to return the Company’s shares to trading as soon as possible, subject to the Company fulfilling all its conditions. Restructuring in the first quarter of 2024 along with working to raise capital in line with the plan as far as possible.

Last August, the Court of Cassation issued a decision to overturn the Court of Appeals decision on the restructuring and send the case back to the Court of Appeals for a new ruling.

Drake & Scull explained at the time that the Court of Cassation decided today to extend until August 22, 2023, the deadline for pronouncing the judgment on the appeal case submitted regarding the request to open restructuring proceedings.