A petition for bankruptcy from UAE-based building giant Arabtec Holding has been accepted by a Dubai court.
The petition was heard by the Dubai Court of First Instance, where it was agreed to open bankruptcy proceedings for Arabtec Holding and its subsidiaries – Arabtec Construction, Austrian Arabian Readymix Concrete Co. LLC, Arabtec Precast LLC, Arabtec Constructions LLC and Emirates Falcon Electromechanical Co. (EFECO LLC).
In a statement to Dubai Financial Market (DFM) on Monday, it added that the court has appointed a trustee for each entity, to publish the bankruptcy decision of each one, review its debts, deposit a list and a record of its creditors and “conduct all the procedures stipulated under the Bankruptcy Law within 35 days from the date of the appointment notification”.
It added: “The court further instructed each trustee to prepare an initial separate report on the assets of each entity and its rights with third parties, in addition to a list of all its managers and members of the board of directors and shareholders for the two years preceding the bankruptcy application, and the trustee’s opinion with respect to the management and the preservation of the company’s assets.”
It was ordered that the initial report be deposited at the court within two weeks.
A further court hearing was scheduled for July 26 to review the progress of the trustees.
In January, the construction company behind iconic structures such as the Burj Khalifa and the Louvre Abu Dhabi, said it had hired deNovo Corporate Advisors and Lumina Capital Advisers as part of efforts to sell subsidiary companies Target Engineering and Arabtec Engineering Services (AES).
While on December 17, the company, which was valued at about AED30 billion ($8.17bn) at its peak in 2014, said it and some of its subsidiaries had filed for insolvent liquidation pursuant to the resolutions of its shareholders on September 30 and November 30.
In its last financial results for the first half of 2020, Arabtec reported a net loss of AED794 million ($216m) for the first six months of the year. It came after the company reported a AED774m ($211m) loss for 2019, a substantial drop from the AED256m ($70m) profit announced in 2018.
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