Chief Legal Officer Among Several Execs Fired From Construction Company Drake & Scull
DSI is in the midst of a restructuring effort as it grapples with a construction slowdown in India and growing losses.
April 26, 2019 at 04:01 PM
3 minute read
Facing ballooning losses, Dubai-based construction and engineering company Drake & Scull International PJSC has fired several of its executives, including its chief legal officer, who has been replaced by the firm's former general counsel.
The company's board of directors Wednesday voted to terminate CEO Tawfiq Abu Soud—who was hired in late January—along with chief financial officer Khaled Jarrar and CLO Mohamed Ghanem. The firings were announced the following day in a meeting results posting on the company's website.
During the same meeting, the board appointed Fadi Saba as the new CLO. He had served as the company's general counsel and board secretary since 2010 and was “directly responsible for all legal matters affecting [Drake & Scull International] in more than 15 countries,” according to his LinkedIn profile. As CLO, Saba will retain the title of board secretary.
A committee of three unnamed executive managers will oversee the company's day-to-day business until a new CFO and CEO are hired.
DSI is in the midst of a restructuring effort as it grapples with a construction slowdown in India and growing losses. In its latest financial statement, the company reported a net loss of more than $1.3 million for 2018, on top of a net loss of about $380,000 in 2017.
As it seeks to stem its financial bleeding, DSI has reportedly hired a team of restructuring advisers from Allen & Overy, Dubai-based financial services firm Trussbridge and Al Tamimi & Co., the Middle East's largest law firm.
DSI's auditor, Ernst & Young, stated in a Dec. 31 report that the company's liabilities exceed its assets by $1.29 million.
“These conditions indicate the existence of material uncertainty that may cast significant doubt about the Group's ability to continue as a going concern and that, therefore, the Group may be unable to realize its assets and discharge its liabilities in the normal course of business,” EY warned.
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