Dubai: It may not all be over yet for Arabtec – some shareholders are pushing for the UAE’s largest company to be put through a restructuring and thus ensure business continuity.
This will be one of the proposals that will be discussed at the general assembly meeting. The proposal also calls for the withdrawal of the liquidation move.
In particular, “The cancelation of the General Assembly decision, which was voted on 30 September 2020, which is the special resolution for the non-continuity of the company, and the authorization of the Board of Directors to file a request to the court to declare bankruptcy and liquidation.”
Instead, these shareholders want to pursue – “by virtue of a special resolution – the continuity and restructuring of the company”.
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Out of the blue
Arabtec, which has undergone massive losses in recent years, sprang a surprise on the market by opting for liquidation after it found no investors for a last-minute rescue act. While it still had a relatively strong project portfolio, the downturn in the market has drastically reduced the options available to it.
In recent weeks, there has been speculation that clients might revisit their contractual deals with Arabtec and see whether they should bring another – better capitalised – contractor to get on with the work. Subcontractors too have been spooked by the liquidation push.
Arabtec has so far not officially said how it plans to tackle these issues. But the move by a group of shareholders to push for business continuity adds another possibility for the builder of the Burj Khalifa.
Or, as some market watchers have mentioned, the construction company could use provisions of the amended UAE Bankruptcy Law to see whether it can work on a viable way out. It will have the cushion of 12 months to come up with workable solutions.