Dubai’s Arabtec to file for liquidation – reports

Dubai-based Arabtec Holding shareholders have authorised its board on Wednesday to file for liquidation, media reports have indicated.

On September 27, in a statement sent to the Dubai Financial Market, Arabtec confirmed that the group had not appointed any debt restructuring partner, but added that it was “working with a group of advisory firms, including Alix Partners, to prepare solutions and recommendations to be presented to the shareholders at the next General Assembly Meeting scheduled on Wednesday 30 September 2020 for discussion and approval.”

Post that meeting on Wednesday, in an internal email seen by Reuters, the company reportedly said: “Unfortunately, against a backdrop of adverse market conditions, we regret to inform you that Arabtec shareholders voted to adopt a plan of liquidation and dissolution due to the company’s untenable financial situation.”

The news agency quoted two further sources as adding that the shareholders will appoint Alix Partners and Matthew Wilde, “or any other person or persons the board considered fit” as the liquidator.

There has been no official confirmation from Arabtec yet regarding the liquidation or the liquidators.

In August, it recorded an H1 2020 loss of Dhs794m and total accumulated losses of Dhs1.46bn.

Last year, Arabtec Holding reported a net loss of Dhs774m, which it attributed to the construction business (Arabtec Construction). In July, Arabtec appointed Waleed Al Mokarrab Al Muhairi as the chairman of its board of directors.

Read: Dubai-based Arabtec appoints Mubadala deputy group CEO as chairman

Al Muhairi is the deputy group CEO of Mubadala and the CEO of the Alternative Investments & Infrastructure platform.

Earlier this year, Arabtec also appointed Wail Farsakh as its new group chief executive officer and Najeh Awad as the acting group chief financial officer.