Troubled construction giant Arabtec on Wednesday confirmed that its board of directors are continuing to work on an application to liquidate the company, without giving a timeline for completion.
In a filing to Dubai Financial Market, Antoine Abi Rached, group general counsel and company secretary, said the board met on Tuesday “to continue issuing the resolutions and take the required actions in relation to proceed with the submission of the insolvency application to the competent court”.
No further details were given.
Arabtec Holding said last month that it was to file an application for its insolvent liquidation at the competent courts “at the earliest opportunity”.
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.
The decision was taken at a general assembly meeting held on November 30 despite a group of shareholders making a last-ditch attempt to save the construction giant from liquidation.
The impact of the liquidation of Arabtec is expected to send “reverberations” throughout the industry, with the repercussions felt on a much wider scale than simply those who are directly involved with the company and its current pipeline of projects, analysts told Arabian Business at the time of the initial announcement.
Arabtec Holding was valued at about AED30 billion ($8.17 billion) at its peak in 2014 and is now worth AED795 million ($216.5 million), with the stock down 60 percent this year alone. Shares on Dubai Financial Market have been suspended since the initial announcement by the company.
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