Arabtec has announced that it has submitted a bankruptcy petition to Dubai Court, six months after shareholders voted to liquidate. The submission seals the fate of one of the UAE’s most high-profile construction companies, which racked up $216 million of losses in the first half of 2020.

In a statement to the Dubai Financial Market (DFM) the company said Arabtec Holding PJSC had submitted the bankruptcy petition to the court in addition to subsidiaries Arabtec Construction LLC, Austrian Arabian Readymix Concrete LLC, Arabtec Precast LLC and Emirates Falcon Electromechanical Co.

The company said an experts’ panel had been appointed by the bankruptcy judge to prepare reports on indebtedness and the possibility of restructuring.

The statement said the company had also applied to join an additional two entities working under the umbrella of the Holding Company, GSI Steel Construction Contraction LLC and Gulf Steel Industries FZE.

News that Arabtec shareholders had voted to liquidate the company broke in September following $216 million of losses in the first half of the year.

After two and a half months of discussions, the decision was made to commence liquidation proceedings in December.

Arabtec was a leading UAE contractor which contributed to some of the country’s most prestigious projects including the Burj Khalifa.

The company announced last year that shareholders had voted to liquidate due to it’s ‘untenable financial situation’.

Five percent of shareholders asked for the restructure and continuation of the company to be considered at an assembly in November 2020, but the decision was made to proceed with bankruptcy.

(Reporting by Imogen Lillywhite; editing by Seban Scaria)

imogen.lillywhite@refintiv.com

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