{"id":50237,"date":"2017-03-30T20:09:13","date_gmt":"2017-03-30T13:09:13","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=50237"},"modified":"2017-03-30T18:21:40","modified_gmt":"2017-03-30T11:21:40","slug":"drake-scull-breaches-terms-of-bank-loans","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/drake-scull-breaches-terms-of-bank-loans\/","title":{"rendered":"Drake & Scull breaches terms of bank loans"},"content":{"rendered":"


\nThe contractor Drake & Scull International has breached covenant terms of its sukuk and other loans, according to the company’s newly filed audited accounts. The company had a conditional waiver in place with its lenders, but according to the accounts statement filed on the Dubai Financial Market it was unable to comply with reporting requirements that were a part of the waiver agreement. As a result, these loans can now be recalled on demand. Payments on its bank borrowings are also overdue, it said.The company was not immediately available for comment.Notes to the accounts by auditors PwC state that a “material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern”.The company, which declared a loss of Dh732.9 million in 2016 (and a Dh826.6m loss the year before) as revenue shrank by 22 per cent to Dh3.3 billion, had a negative cash balance of Dh305m at year-end. Accounts show that its gearing (debt-to-equity) ratio increased to 64 per cent (from 48 per cent a year earlier).It also said that the company was owed Dh1.7 billion from customers on contracts relating to unapproved change orders and claims that remain the subject of continuing negotiations and discussions. Drake & Scull’s management has said that it considers the money owed to be “fully recoverable”.Drake & Scull is attempting to raise funds in the form of a Dh500m rights issue that was announced last month, for which it has said it has a “binding offer” of support from Tabarak Investment – a Dubai funder chaired by the Saudi businessman Abdulwahab Al Shehri. It has also just offloaded its stake in One The Palm – a luxury residential project on Palm Jumeirah – to its former joint venture partner Omniyat for Dh308m.A letter to shareholders by the chairman Majed Al Ghurair stated that the company was “confident that the strength of our business model, the changes we have made to our management and the renewed focus on our clients and our operational excellence” would allow it to overcome current market conditions and deliver its backlog.”Our main focus will be strengthening our capital structure and reducing our leverage level, securing new profitable work in our focus countries, delivering our order book at our forecast margins and recovering our working capital,” he said.mfahy@thenational.aeFollow The National’s Business section on Twitter
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\nSource : thenational.ae
\nRead more…Drake & Scull breaches terms of bank loans<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The contractor Drake & Scull International has breached covenant terms of its sukuk and other...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-50237","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-d4h","jetpack-related-posts":[{"id":51723,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/tabarak-to-become-majority-owner-of-drake-scull\/","url_meta":{"origin":50237,"position":0},"title":"Tabarak to become majority owner of Drake & Scull","date":"April 13, 2017","format":false,"excerpt":"\r Dubai-based contractor Drake & Scull International (DSI) has revealed the terms of its recapitalisation and set a date for shareholders to decide on whether to approve the deal that will help it wipe out accumulated losses of about Dh1 billion and make Tabarak Investment its biggest shareholder.The company is\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":50255,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/auditor-warns-on-drake-sculls-future-as-contractor-breaches-terms-of-bank-loans\/","url_meta":{"origin":50237,"position":1},"title":"Auditor warns on Drake & Scull's future as contractor breaches terms of bank loans","date":"March 30, 2017","format":false,"excerpt":"\r Drake & Scull International's charman Majed Al Ghurair has said the company will focus on \"strengthening our capital structure and reducing our leverage level\" after the contractor reported a loss of Dh732.9m and confirmed it was in breach of banking covenants. It finished the year with a negative cash\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":53996,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/drake-and-scull-shareholders-reject-groups-capital-raising-plan\/","url_meta":{"origin":50237,"position":2},"title":"Drake and Scull shareholders reject group's capital-raising plan","date":"May 8, 2017","format":false,"excerpt":"\r Shares in Dubai-based contractor Drake and Scull International (DSI) fell to their lowest level in 15 months on Sunday after the shareholders voted to further increase the company's planned capital reduction and refused to subscribe to a capital raising.Drake and Scull shares fell by 9.93 per cent during trading\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":54046,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/drake-and-scull-shareholders-approve-groups-capital-raising-plan\/","url_meta":{"origin":50237,"position":3},"title":"Drake and Scull shareholders approve group's capital-raising plan","date":"May 8, 2017","format":false,"excerpt":"\r Shares in Dubai-based contractor Drake and Scull International (DSI) fell to their lowest level in 15 months on Sunday after the shareholders voted to further increase the company's planned capital reduction and refused to subscribe to a capital raising.Drake and Scull shares fell by 9.93 per cent during trading\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":54052,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/drake-and-scull-shareholders-vote-to-increase-capital-raising-and-reject-rights-issue\/","url_meta":{"origin":50237,"position":4},"title":"Drake and Scull shareholders vote to increase capital raising and reject rights issue","date":"May 8, 2017","format":false,"excerpt":"\r Shares in Dubai-based contractor Drake and Scull International (DSI) fell to their lowest level in 15 months on Sunday after the shareholders voted to further increase the company's planned capital reduction and refused to subscribe to a capital raising.Drake and Scull shares fell by 9.93 per cent during trading\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":54058,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/drake-scull-shares-slump-as-shareholders-vote-to-increase-capital-reduction\/","url_meta":{"origin":50237,"position":5},"title":"Drake & Scull shares slump as shareholders vote to increase capital reduction","date":"May 8, 2017","format":false,"excerpt":"\r Shares in Dubai-based contractor Drake and Scull International (DSI) fell to their lowest level in 15 months on Sunday after the shareholders voted to further increase the company's planned capital reduction and refused to subscribe to a capital raising.Drake and Scull shares fell by 9.93 per cent during trading\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/50237"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=50237"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/50237\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=50237"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=50237"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=50237"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}