The board of Dubai-based construction giant Arabtec postponed a planned meeting on Monday to discuss the company’s liquidation process.
As the clock ticks to meet an end of November deadline set by shareholders to submit the liquidation application, the meeting has been put back by nearly a week.
In a filing to the Dubai Financial Market on Tuesday by Antoine Abi Rached, the company’s general counsel and board secretary, it was announced that the board will now meet on Sunday October 25, without giving any reason for the postponement.
On September 30, Arabtec shareholders voted to discontinue with the company and dissolve it due to its untenable financial situation.
The resolution of the shareholders granted the Arabtec board a maximum period of two months to allow for discussions with the main stakeholders before submitting the liquidation application.
Abdulla Alawadi, chairman of the law firm Abdulla Alawadi & Associates, has warned that sub-contractors and suppliers dealing with Arabtec are facing “significant impact” to their businesses.
He said the liquidation of Arabtec would add to the “chaos” that developers are already having to deal with amid the ongoing coronavirus pandemic.
“From the perspective of developers, it is obvious that liquidation of this magnitude coupled with the challenges posed by the pandemic has created a state of chaos in different aspects,” he said.
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