Dubai-based contractor Drake & Scull International has appointed Muin Al Saleh as its new chief executive, as the company looks to expand operations following a debt restructuring deal with creditors this year.
Mr Al Saleh, who has held executive leadership roles at engineering and construction firms in the Middle East and other international markets, will take up the post immediately, Drake & Scull said on Thursday in a filing to the Dubai Financial Market, where its shares are traded.
“His appointment aims to reinforce the company’s commitment to revitalising operations, focusing on operational efficiency, controlling costs, delivering current projects, winning new projects and driving productivity and growth," the company said.
The announcement comes after Drake & Scull wrote off Dh4.18 billion ($1.1 billion) in financial and commercial debts and started the process of settling with other creditors after completing the requirements of its restructuring process this year.
As part of the settlement process, the company has issued sukuk to its creditors who have debts equal to or exceeding Dh1 million, with the Islamic bonds convertible to shares five years from the date of issuance.
The company has made cash settlements for creditors with debts of less than Dh1 million, with a total amount of Dh13.6 million to be paid, according to the final list of creditors published on January 30.
Drake & Scull, which provides general contracting and engineering services, and undertakes projects in the oil and gas, and water treatment sectors, has a history in the region dating back to 1966 when it first set up base in Abu Dhabi.
However, the contractor fell on hard times during the three-year oil price slump in 2014, which heavily affected the property and construction sector in the region.
In the severe liquidity crunch that followed, many construction companies across the region laid off tens of thousands of workers as payments dried up.
Trading of Drake & Scull's shares was suspended in November 2018 after the company reported heavy financial losses.
It resumed trading on the DFM in May this year after the company increased its share capital by Dh300 million and following the acceptance of the Dubai Courts of its restructuring plan that writes off 90 per cent of its debt.
Drake & Scull swung to a profit in the third quarter of this year on the back of higher revenue. The total profit attributable to equity holders of the parent for the three months to the end of September reached Dh5.9 million compared to a loss of about Dh35 million in the same period last year.
Revenue grew 13 per cent annually to Dh21.5 million during the period.
