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 to apply for liquidation due to its unsustainable financial position due to the repercussions of the Corona virus pandemic.

Two sources said the shareholders have also mandated 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 the shareholders of (Arabtec) have agreed to adopt a liquidation and dissolution plan due to the financial conditions of the company."

Arabtec could not be reached for comment.

And «Arabtec» held a meeting of the shareholders yesterday, to decide whether it will continue the work, or whether the company will be liquidated and dissolved, after the Corona pandemic affected its projects and incurred additional costs.

The shares of «Arabtec Holding» 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 last September, she said that she 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.

For his part, a financial analyst, who preferred not to be named, confirmed that the company needs five billion dirhams to return its activities to its normal path, which is considered a difficult matter for any financier or investor in the company, in light of the current conditions that the construction sector is going through in the countries In which the company operates, indicating that the path tends to write off the company in case nothing arises in the matter.

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