A&O Shearman has advised Drake & Scull International (DSI) on its AED 4 billion debt restructuring, marking the first major restructuring under the UAE’s new bankruptcy law.
The restructuring converted some of the company’s debt into shares through a Sharia-compliant bond, known as Sukuk, and raised funds via a public rights issue.
DSI resumed trading on the Dubai Financial Market on May 29 after more than five years. The company, which is based in Dubai and offers construction services, had faced significant financial hardship, which was further exacerbated by the onset of the coronavirus pandemic. The resumption of trading was the final step in the company’s restructuring plan, which was approved by the Dubai Court of Appeal on November 1, and included plans to raise funds and write off 90% of its debts.
The A&O Shearman team comprised seven partners across the firm’s UAE and UK offices, and was led by Middle East restructuring head, Adam Fadian, who said in a statement: “This groundbreaking achievement paves the way for future restructurings in the region.”
Dubai partners Bilal Ahmad and Zeid Qursha were also involved in the restructuring, alongside Abu Dhabi partners Ahmad Ma’abreh, Ibrahaim Mubaydeen, and the firm’s senior partner, Khalid Garousha, as well as Jamie Durham in London.
A&O Shearman is the third largest integrated law firm in the world following a merger between UK ‘Magic Circle’ law firm Allen & Overy and US law firm Shearman & Sterling, which went live on May 1.
The restructuring was supported by UAE law firm Hadef & Partners, with Dubai partner Mohammed Al Dhaheri leading the team.
The UAE bankruptcy law came into force on May 1, establishing, among other things, a new insolvency court and a more structured process for companies facing financial distress. It introduced preventative settlements and expanded liabilities.
