Dubai contractor Arabtec to file for liquidation at ‘earliest opportunity’

Dubai contractor Arabtec Holding has confirmed that it will file an application for its insolvency liquidation at the courts at the “earliest opportunity”.

The decision was taken at a general assembly meeting held on November 30 and reversed efforts sought by a minority group of shareholders to restructure and save the company from liquidation.

“The board 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 the company’s stakeholders that the company be placed into an insolvent liquidation (subject to court approval) at the earliest opportunity,” a statement issued by the company said, following the meeting on Monday.

The conclusion was reached following a two-month period of discussions with key stakeholders. During a board meeting in September, Arabtec shareholders voted to adopt a plan of liquidation and dissolution due to the company’s “untenable financial situation”.

Read: Dubai’s Arabtec to file for liquidation – reports

“Owing to inter-dependencies of certain of the company’s subsidiaries, the application to the competent courts will also request that Arabtec Construction, Arabtec Constructions, Austrian Arabian Readymix Concrete and Arabtec Precast (collectively the impacted companies) will also be placed into insolvent liquidation simultaneously,” the statement added.

However, for now, no application will be made to the competent courts in respect of any of the company’s other subsidiaries, it said.

“Until such time when an insolvency trustee is appointed, the company 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.