Arabtec Holding discloses update on bankruptcy, liquidation filing

Logo of Arabtec Holding

Arabtec Holding disclosed the latest developments and measures taken in relation to the bankruptcy and liquidation application for the company and certain subsidiaries.

In a statement to the Dubai Financial Market (DFM), the construction major said a bankruptcy petition was submitted to the Dubai Court by the company and the following subsidiaries: Arabtec Construction, Austrian Arabian Readymix Concrete Co., Arabtec Precast, and Emirates Falcon Electromechanical Co.

The bankruptcy judge decided in a hearing held on Feb.18, 2021, to appoint a committee of seven experts to look into the bankruptcy application.

The committee will prepare a separate report for each subsidiary and a consolidated report on the holding firm. In addition, the panel will evaluate its financial position, whether it is considered indebted and the possibility of restructuring.

The expert committee held its first session with the legal representatives of the companies - Global Advocacy & Legal Counsel.

The matter is still pending to date as the report has not been issued yet, the statement noted.

Arabtec submitted a request on March 1, 2021, to the Dubai Court to introduce two additional firms operating under its umbrella, namely, GSI Steel Construction Contracting and Gulf Steel Industries.

Arabtec and certain subsidiaries filed for liquidation on Dec. 17, 2020, according to the shareholders’ resolutions passed at the general assembly meeting held on Nov. 30, 2020, Argaam reported.