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Arabtec Holding, a listed construction major, has filed a bankruptcy petition with the Dubai Court, the company said on Sunday.
The holding company said in a statement to Dubai Financial Market (DFM), where it is listed, that the bankruptcy petition has also been submitted for its subsidiaries Arabtec Construction LLC, Austrian Arabian Readymix Concrete Co. LLC, Arabtec Precast LLC and Emirates Falcon Electromechanical Co.
The company had also added its two other entities — GSI Steel Construction Contracting LLC and Gulf Steel Industries FZE — on March 1.
In September 2020, Arabtec Holding shareholders had authorised the board of the Dubai-listed construction company to file for liquidation due to its untenable financial position because of Covid-19 pandemic.
It had posted a first-half loss of Dh794 million (m) and total accumulated losses of Dh1.46 billion (b), it had said in September 2020.
The UAE law requires companies to vote on whether they should continue operating if their accumulated losses amount to half of their issued share capital.
The company said in a statement on Sunday that in a court hearing on February 18, the bankruptcy judge had appointed a seven-member experts’ panel to look into its plea.
The experts will be tasked with preparing separate reports for each subsidiary as well as a consolidated report about the holding company. They will also evaluate the group’s financial position and ascertain whether it is considered indebted and the possibility of any kind of restructuring.
The company said that its legal representatives held their first meeting with the experts and other parties such as Global Advocacy and Legal Counsel.
waheedabbas@khaleejtimes.com
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