Arabtec shareholders authorise board to wind up agency: Report | United Arab Emirates Information
According to an e-mail from Reuters, the construction company in Dubai is to be liquidated due to an “unsustainable financial situation”.
The shareholders of Arabtec Holding have authorized the management board of the construction company listed in Dubai to apply for liquidation due to its unsustainable financial situation following the consequences of the coronavirus pandemic, according to an internal email from the company.
The shareholders also authorized Arabtec to appoint AlixPartners and Matthew Wilde, or any other person or persons the board deemed appropriate, as liquidators, two sources told Reuters.
“Unfortunately, against the backdrop of adverse market conditions, we have to inform you that Arabtec shareholders have voted to accept a liquidation and dissolution plan due to the unsustainable financial situation of the company,” the company said in an email from Reuters on Wednesday.
Arabtec could not immediately be reached by Reuters for comment.
Arabtec held a general assembly on Wednesday to decide whether to continue operating after the COVID-19 pandemic projects or to liquidate and wind up, which resulted in additional costs.
Arabtec Holding shares, which helped build Louvre Abu Dhabi and the world’s tallest skyscraper, the Burj Khalifa in Dubai, had more than halved this year when they were suspended until the AGM.
The company, which posted a loss of 794 million dirhams ($ 216 million) and a total cumulative loss of 1.46 billion dirhams ($ 398 million) for the first half last month, announced on Sept. 9 that it had convened the General Assembly under an article of United Arab Emirates Company Law.
The law requires companies to vote on whether to continue doing business when their accumulated losses are half of their issued share capital.
Several companies in the UAE have tried in recent years to extend the life of their debt or negotiate better terms to avoid defaults after an oil price crash hit energy services and construction.
Last week creditors began enforcing claims against Abu Dhabi-based Al Jaber Group, which has had problems since building up debt as a result of the housing crisis in the UAE.
Another construction company listed in Dubai, Drake & Scull, is working under UAE bankruptcy law to reach an out-of-court settlement with its creditors.