MODAM to spend Rs100mn on DKL revival

December 10, 2021 (MLN): Modaraba Al-Mali (MODAM) is targeting to complete the revival of Drekkar Kingsway Limited (DKL) by the end of April 30, 2022, under the “Revival Business Plan” wherein the financial impact of this transaction will be around Rs100 million, the company filing on PSX said.

This is to be the second successful revival of the year after Service Fabrics Limited (SERF).

Speaking to Mettis Global on the same, the company said, “This complete revival means the completion of the funding round, etc. which we anticipate to take place in the next few months.”

The trading of the stock on the normal counter still needs some steps to be completed, it added.

To note, MODAM is a specialized Islamic vehicle focusing on Islamic venture capital/private equity and restructuring/rehabilitation of companies having potential for revival. To augment it, the company has made arrangements with DKL to revive the same.

In the first step, DKL is managed to remove one of the reasons for the defaulter’s segment, suspension and de-listing under regulation no. 5.11.1 (l) and the honorable Islamabad High Court in its order dated December 08, 2021, has dismissed the winding-up petition against the company as withdrawn.

Furtherance to the above development, DKL shall be completing/taking the following corporate actions under the guidance, advice and assistance of the MODAM:

• Implementation of Revival Business Plan;
• Change of name of the company to the proposed name of Oilboy Energy Limited to represent its revised/intended business activities;
• Increase in the company’s authorized capital to Rs1.60 billion;
• Change in object clause of the memorandum of association of the company;
• Adoption/change of articles of association of the company;

DKL is in the process to restore the “Going Concern Assumption” and arrange the updated “auditors’ opinion” in this regard and removing the other reason of defaulters’ segment under Regulation no. 5.11.1 (i).

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