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Monitoring of Gulf 365 – Abu Dhabi – Dubai: "Gulf 365".
On April 25, 2019, Drake & Scull announced a financial loss of AED 4.5 billion In this press release, Drake & Scull would like to comment on recent media reports that the losses reported in 2018 were caused by accumulated losses. It was disclosed by the previous administration during the years (2009-2016), which includes bad debts, goodwill abatement, losses in company operations in different countries, as well as irregularities and mismanagement of the company's business by the previous administration.
At the beginning of 2018, the company conducted investigations into previous management practices, which resulted in the opening of 15 criminal complaints to the Federal Attorney's Office for acts related to violations of the previous administration related to the exaggeration inflating the company's assets and value and fame, in addition to violations and documented acts During his tenure as Managing Director of Drake & Scull and its subsidiaries between 2009 and their resignations of the Board of Directors in the first half of 2017, including actions that occurred during the Company's listing period as a public contribution to the DFM in 2009, And the joy of companies belonging to members of the previous administration during the (2009 – 2011) in the United Arab Emirates and abroad, and all these communications are still under consideration by the Federal Attorney General.
The company states that the report presented at the General Shareholders' Meeting held on May 4, 2017 to shareholders and strategic partners was prepared by the company's former management and by a certified financial advisor in which the shareholders agreed to the capital restructuring process, This report was based on incorrect and incorrect information on the value of existing projects, their profitability and realization rates, as well as hiding relevant information such as: size, number and sensitivity of the lawsuits against the company and judgments issued or anticipated against the company. company and the actual value of the share. SSAT these issues as well as to conceal the true size of liquidity required by the company, which exceeds 500 million dirhams, which was pumped by the strategic partner, based on the recommendations presented in the report.
Upon completion of the capital structure process and the entry of the new management at the end of 2017, the company's financial statements were thoroughly examined and disclosed, revealing the real size of the losses incurred by the company and the difficult financial situation it is experiencing due to lack of liquidity and high indebtedness. Due to the fact that a large part of the receivables is overvalued, many of which are based on unclaimed claims to the Company, the facts about the report to the strategic partner and the shareholders resulted in a complaint to the Securities and Commodities Authority by the Company. One particular; to process members of the former executive administration.
The announcement of the 2018 results, including the write-off of goodwill, is part of management's ongoing commitment to transparency, accountability and governance under the current restructuring plan. The company also discovered that part of these losses and provisions is due to hidden violations and mismanagement of subsidiaries in different countries in terms of pricing, management and delivery of projects, resulting in accrued expenses, fines, debt and legal issues. Protect the rights of shareholders, pursue previous management legally, and take all measures that will promote the company again and turn them into a successful company for the benefit of all shareholders.
The company states that, despite the current difficulties, it undertakes to continue supporting the restructuring process and working to overcome the consequences and consequences of the serious mistakes made by the previous administration through the team of executives and consultants indicated with the necessary knowledge to negotiate with banks
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