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FINANCIAL NEWS
Depa negotiates discounts for immediate payments
29 Dec 2010
(MENAFN) Mahmoud Yousif, the general manager of Specialised Metal Design in Dubai which is a sub-contractor on the Ferrari World project, said that Depa sent the company an offer of getting paid immediately if the latter provided a ten percent discount, reported The National.
The GM said that the offer also stated that if Specialised Metal Design wanted to get fully paid, it would have to wait. He said that if sub-contractors are short on cash, they would have no choice but accepting the offer.
A Depa spokesperson said that Depa would not disclose terms of negotiations with sub-contractors. He assured that Depa planned to pay all sub-contractors, however, negotiating payment terms is a legitimate common practice especially after the global financial crisis.
It is noteworthy that Depa got the won the Ferrari World deal for $54.4 million. However, Depa reported a $28 million of losses for the first half of 2010 compared with a profit of $25 million in the same period the year before.
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