Leading Dubai-based contractor Arabtec Holding said it will go ahead with its plans to file application for insolvent liquidation in the competent courts 'at the earliest opportunity' due to its untenable financial position following the fallout from the coronavirus pandemic.
The announcement was made at the General Assembly Meeting yesterday (November 30).
In accordance with the resolution of the company’s shareholders at the General Assembly Meeting held on September 30, the conclusion was reached following a two-month period of discussions with key stakeholders, said a statement from the Dubai contractor.
Arabtec Holding's board of directors has concluded that it is no longer tenable for the company to continue operating outside of a formal insolvency process and that it is in the best interests of its stakeholders for an early insolvent liquidation.
Owing to inter-dependencies of certain subsidiaries of Arabtec, the application to the competent courts will also request that Arabtec Construction, Arabtec Constructions, Austrian Arabian Readymix Concrete Company and Arabtec Precast (collectively the Impacted Companies) will also be placed into insolvent liquidation simultaneously, it stated.
For now, no application will be made to the competent courts in respect of any of the company’s other subsidiaries, said the company in its statement.
Until such time when an insolvency trustee is appointed, Arabtec Holding intends to continue engaging with key stakeholders to explore options to preserve value and where possible to avoid such subsidiaries needing to be placed into a formal insolvency process, it added.
TradeArabia had earlier reported that the Arabtec's shareholders had ratified the board's decision to appoint AlixPartners and Matthew Wilde, or any other person or persons the board considered fit, as liquidator.
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