Company's board will oversee the running of the firm until a new CEO is found
Embattled Dubai-based contractor Drake & Scull has said that both its chairman and its chief executive have resigned from their posts following a board meeting on Tuesday.
The company said in a statement to the Dubai stock exchange that Abdullah Atatreh, who was appointed as chairman in September last year, would be replaced by independent board member Obaid Bin Touq, with a new independent board member, Abdullah Al Matrooshi, being voted onto the company's board. It did not give a reason for Atatreh's departure.
Meanwhile, the company also said that Yousef Al Mulla, who was only appointed to his post in August, had also resigned.
"Until a replacement has been appointed, the management of the company will be carried under the supervision of the Board of Directors," the statement said. It did not give a reason for Al Mulla’s departure.
Drake & Scull announced last month that it had appointed Trussbridge Advisors (DIFC), Deloitte Allen & Overy and Al Tamimi & Company as advisors to work on a new restructuring plan for the firm, which declared a 497 million dirham ($119.3 million) loss during the three months to September 30, bringing accumulated losses to more than 1.1 billion dirhams, meaning the company had net liabilities of 401.4 million dirhams at the end of the same period. A vote was taken by shareholders in October to allow the company to continue to as a going concern.
The company has been struggling financially for a number of years, and last year embarked on a restructuring, which saw three quarters of its share capital wiped out to expunge earlier losses of 1.7 billion dirhams. The restructuring also involved a 500 million dirham injection of capital from shareholder Tabarak Investment.
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