Dubai: Drake & Scull International, the Dubai-based project firm, is looking to a favourable verdict from the Court of Cassation to bring it back from the edge of going bankrupt.

In an update to its status, DSI said that the Court of Cassation has issued a temporary stay on a judgement issued by the Court of Appeal. A hearing has been set for March 14 to look into the merits of what Drake & Scull has to say.

Recent months had been particularly tiresome for the company as it sought a local court’s approval to initiate a restructuring process. But then multiple factors came into play that delayed taking this up.

“Commencing the restructuring procedures in accordance with the previous judgment will not enable the company to complete… in the required time,” DSI said in a statement. “And may require a longer period for the purposes of completing the procedures.”

Anything that extends the launch of a full-scale restructuring would mean higher costs, something that it could ill-afford to do so. DSI admits as much.

Draining cash by the day

“Since the company aims to complete the restructuring procedures at the least possible time and cost - given the difficult financial issues that the company is passing through - and the judicial executions' reservations that drain its cash day after day,” the company said.

“Since this matter will not be achieved except through the acceptance of the court to commence the restructuring procedures - in accordance with the circumstances of the emergency financial crisis and the acceptance of the previous procedures approved by the Financial Regulatory Committee - otherwise, the company will be bankrupted.”

More to follow...