Arabtec to file application for insolvent liquidation at competent courts
DUBAI - At a General Assembly Meeting held on Monday, Arabtec Holding PJSC ("Arabtec" or "Company"), confirmed that it will, at the earliest opportunity, file an application for its insolvent liquidation at the competent courts.
In accordance with the resolution of the Company’s shareholders at the General Assembly Meeting held on September 30, 2020, the conclusion was reached following a two-month period of discussions with key stakeholders.
The Board has concluded that it is no longer tenable for the Company to continue operating outside of a formal insolvency process and that it is in the best interests of the Company’s stakeholders that the Company be placed into an insolvent liquidation (subject to court approval) at the earliest opportunity.
Owing to inter-dependencies of certain of the Company’s subsidiaries, the application to the competent courts will also request that Arabtec Construction LLC, Arabtec Constructions LLC, Austrian Arabian Readymix Concrete Co LLC and Arabtec Precast LLC (collectively the Impacted Companies) will also be placed into insolvent liquidation simultaneously.
For now, no application will be made to the competent courts in respect of any of the Company’s other subsidiaries. Until such time when an insolvency trustee is appointed, the Company intends to continue engaging with key stakeholders to explore options to preserve value and where possible to avoid such subsidiaries needing to be placed into a formal insolvency process.