A&O Shearman advises Drake & Scull International on the first major court-sanctioned restructuring under the UAE Bankruptcy Law
A&O Shearman has advised Drake & Scull International PJSC (DSI) on its AED4 billion successful debt restructuring, marking a significant milestone as the first major restructuring to be fully implemented under the UAE Bankruptcy Law.
The restructuring plan effected an ambitious and comprehensive restructuring of DSI’s capital structure through a significant debt write-down, a quasi-debt for equity swap via an innovative Shari’ah-compliant mandatory convertible sukuk as well as the raising of new equity pursuant to a public rights issue.
Adam Fadian led the A&O Shearman team advising DSI. He commented: “We are immensely proud to have worked alongside the management of DSI and its stakeholders in delivering the first major court-sanctioned restructuring to be implemented under the UAE Bankruptcy Law. DSI has demonstrated that the formal restructuring processes under the law represent a viable ‘Plan B’ which can be added to the restructuring toolkit and utlised to deliver successful outcomes, even in the most challenging of circumstances. This groundbreaking achievement paves the way for future restructurings in the region.”
During a recent DSI media briefing, Fadian also noted, “When you’re the first, you’re in unchartered territory and there are inevitably elements of uncertainty. Key to our success in navigating those uncertainties was being able to leverage the strength of A&O Shearman’s global network and deep restructuring expertise to deliver solutions comprising elements of international best practice, tailored for the local market.”
Adam Banks, the head of A&O Shearman’s restructuring practice in the Middle East, also commented, “The successful restructuring of DSI is a testament to the collaborative efforts of all parties involved and underscores our position as the leading law firm in the Middle East for complex restructurings. Our dedicated three-Partner team specialising in Middle East restructurings gives us unmatched bench strength for complex restructurings and our lead roles on all of the major restructurings known to be currently undergoing similar processes in the UAE keeps us at the forefront of market developments.”
The A&O Shearman team comprised Adam Fadian, Bilal Ahmad, Ibrahaim Mubaydeen, Ahmad Ma’abreh, Khalid Garousha, Zeid Qursha, Jamie Durham, Vicky Chen, Bruce Rennie, Rory Castle, Anthony Mrad, Haifaa Ibrahim, Hanif Osman, Aditya Vickram and Leela Wignaraja.
