Operating outside insolvency process dismissed as untenable
DUBAI/November 30-2020: The meeting of the shareholders of Arabtec Holding held today (November 30) as scheduled sidestepped a move made by a certain section of shareholders to revive the company, and confirmed that the company will, at the earliest opportunity, file an application for its insolvent liquidation at the competent courts.
Businessbenchmark.news had earlier explained the unworkability of a revival plan mooted by a section of shareholders, highlighting the financial mess the company is already mired in.
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 today 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 stakeholders that the company be placed into an insolvent liquidation (subject to court approval) at the earliest opportunity.
Impacted subsidiaries to seek liquidation
A company statement said that owing to inter-dependencies of some 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