DUBAI: Dubai builder Arabtec Holding said yesterday it will go ahead with its earlier plan to file for bankruptcy and liquidation after shareholders did not agree for the company to continue its existing business and seek restructuring.
The statement came after a shareholder meeting earlier yesterday discussed a proposal from a group of investors to reverse a decision made in September to file for liquidation.
“The board has concluded that it is no longer tenable for the company to continue operating outside of a formal insolvency process,” Arabtec said in an email.
“... 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.”
Shareholders, including Abu Dhabi state fund Mubadala Investment Company, voted in September to liquidate Arabtec after losses deepened due to the coronavirus crisis.
Arabtec’s move to liquidate followed a first half loss of $216.18 million and total accumulated losses of nearly $400m. It said the pandemic had hit projects and lifted costs.
Arabtec said no application will be made to the courts in respect of any of the company’s other subsidiaries.