Dubai-based Arabtec Holding to file for liquidation
Construction firm Arabtec Holding will file for liquidation because of heavy financial losses following the outbreak of Covid-19.
The company's shareholders on Wednesday approved the board's plan to liquidate.
Shareholders also authorised Arabtec to appoint AlixPartners and Matthew Wilde, or any other person or persons the board considered fit, as liquidator, news agency Reuters said citing sources.
"Unfortunately, against a backdrop of adverse market conditions, we regret to inform you that Arabtec shareholders voted to adopt a plan of liquidation and dissolution due to the company's untenable financial situation," the company said in a statement.
Arabtec Holding posted a Dh774.5 million net loss in 2019, citing weaker income from its construction business amid tighter liquidity in the construction sector.
The company is also in the process of appointing an advisor to work on capital and debt restricting plan after reporting losses and weaker revenues in the first half of 2020.
Its first half net loss attributed to the owners of the company hit Dh788.4 million as compared to Dh57.9 million profit for the same period last year. Its revenues plummeted 28 per cent to Dh3 billion.
The company has been involved in some of the UAE's top projects such as the Louvre Museum, the Burj Khalifa, Dubai International Airport's expansion, the Al Maktoum International Airport, among others.