Dubai contractor Drake & Scull fires CEO, CFO as restructuring continues

Tawfiq Abu Soud had only been appointed as the CEO in January this year

Struggling Dubai contractor Drake & Scull International (DSI) has terminated the services of its top executive management as it continues to restructure operations.

In a bourse statement on Thursday, DSI said its board has approved dismissing group CEO Tawfiq Abu Soud, group CFO Khaled Jarrar and group chief legal officer Mohamed Ghanem.

Abu Soud had only been appointed as the CEO in January this year, taking over from Yousef Al Mulla.

Read: Dubai contractor Drake & Scull appoints new group CEO

“The day to day business of the company will be managed by an executive committee which will consist of three executive managers till the appointment of a new group CEO and group CFO,” the statement said.

The board also approved and ratified the appointment of Fadi Saba as the board secretary and chief legal officer, it added.

Dubai-listed DSI, hit hard by the construction slowdown in the region, has seen several leadership changes as it seeks to restructure operations.

Yousef Al Mulla, who was appointed as group CEO in August 2018 – the second executive in less than five months – resigned from his post in December 2018.

The company also appointed Obaid Bin Touq as its new chairman late last year after Abdulla Atatreh resigned.

Read: Dubai’s Drake & Scull announces resignation of chairman, CEO

In October, shareholders voted to allow the company to continue as a going concern, despite DSI posting heavy losses in the last few years.

Read: Dubai’s Drake and Scull shareholders decide not to dissolve the company

In November, DSI also appointed Trussbridge Advisors (DIFC), Allen & Overy, Al Tamimi & Company, and Deloitte as joint-advisors to work on a restructuring plan for the firm.

The firm, which posted a Dhs497m ($119.3m) loss in the third quarter, saw its accumulated losses reach more than Dhs1.1bn, resulting in net liabilities of Dhs401.1m at the end of the period.

Read: Dubai’s Drake & Scull appoints advisors after posting Dhs500m Q3 loss