Message: Arabtec shareholders agree to liquidate the company

An internal email stated that the shareholders of Arabtec Holding authorized the board of directors of the Dubai-listed construction company today, Wednesday, to apply for liquidation due to its unsustainable financial position due to the repercussions of the Coronavirus pandemic.

Two sources told Reuters that shareholders have also authorized the board to appoint Alex Partners, Matthew Wilde, and any other person or persons the board deems appropriate, as liquidators.

The letter said: "Unfortunately, in light of adverse market conditions, we regret to inform you that Arabtec shareholders have agreed to adopt a liquidation and dissolution plan due to the financial conditions of the company."

It was not possible until now to contact Arabtec for comment.

Arabtec held a meeting of the shareholders today, Wednesday, to decide whether to continue the work or to liquidate and dissolve the company after the Corona pandemic damaged its projects and incurred additional costs.

Shares of Arabtec Holding, which participated in building the Louvre Abu Dhabi Museum and Burj Khalifa in Dubai, have fallen by more than half since the beginning of this year and it was decided to suspend trading on them prior to the shareholders' meeting.

Last month, the company announced that it suffered losses in the first half of the year amounting to 794 million dirhams (216 million dollars), bringing the accumulated losses to 1.46 billion dirhams.

On the ninth of September, it said that it was calling for a general assembly meeting under one of the articles of the companies law in the UAE.

The law requires companies to vote on business continuity if the accumulated losses amount to half of the issued share capital.

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