Dubai-based contractor Drake & Scull International's former chief executive and a former employee have been ordered by a court to pay the company Dh151.9 million ($41.3 million) to compensate for damages incurred during their tenure.
The Dubai Court of Cassation issued a ruling that former chief executive Khaldoun Tabari and former company employee Saleh Muradweij are obliged to pay the sum as compensation for "material and moral damages" incurred by the company, Drake & Scull said in a statement to the Dubai Financial Market on Wednesday.
This is in addition to legal interest at the rate of 5 per cent from the date the judgment becomes final until full payment is made.
"Following the Court of Cassation’s rejection of the appeals, the judgment is now final, binding, and no longer subject to appeal," Drake & Scull said in the bourse filing.
"The company has already initiated enforcement procedures to recover the awarded amounts."
The contractor has previously secured attachments on assets belonging to the defendants, it said. Additionally, the Public Funds Prosecution – Abu Dhabi has imposed attachments on funds and assets belonging to Mr Tabari, Drake & Scull said.
The ruling "marks a turning point for the company," it said in a statement on Wednesday.
"With this matter resolved, DSI is eager to focus its efforts on strengthening operations, pursuing new projects, and delivering value to its shareholders."
Drake & Scull, which provides general contracting and engineering services, and undertakes projects in the oil and gas, and water treatment sectors, has a history in the region dating back to 1966 when it first set up base in Abu Dhabi.
Jordanian businessman Mr Tabari, who took a majority stake in the company in 1998, led it to public listing in 2008, offering 55 per cent of its shares in a deal that was 101 times oversubscribed.
The company was a preferred engineering and contracting partner for high-profile projects in the UAE and was among the most-traded stocks on the bourse.
However, the contractor fell on hard times during the three-year oil price slump in 2014, which heavily affected the property and construction sector in the region. The company declared heavy losses in 2015 and 2016, leading to Mr Tabari stepping down as chief executive in August 2016. Trading of Drake & Scull's shares was suspended in November 2018.
The company filed several cases against Mr Tabari and the previous management in 2009-2011, alleging that they falsely inflated asset prices before its IPO. While Mr Tabari said he was the subject of a “smear campaign” and blamed the company for a “clear lack of strategy”, Drake & Scull refuted his claims.
Drake & Scull resumed trading on the DFM in May 2024 after the company increased its share capital by Dh300 million and following the acceptance of the Dubai Courts of its restructuring plan that saw it write-off 90 per cent of its debt.
Drake & Scull wrote off Dh4.18 billion in financial and commercial debts and started the process of settling with other creditors after completing the requirements of its restructuring process in 2024. In November, it appointed Muin Al Saleh as its new chief executive, as it seeks to expand operations.
