Dubai construction company Arabtec's shareholders today voted to adopt a plan for liquidation as COVID-19 reduced the number of new projects and led to additional costs.
The shareholders authorised the board to file for an insolvent liquidation in a general body meeting held to decide whether to continue operate or liquidate and dissolve the firm.
"Unfortunately against the 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," a electronic document seen by Zawya stated.
Once a leading UAE contractor which helped build the Burj Khalifa in Dubai, Arabtec swung to a loss of 794 million dirhams ($216 million) in the first half of the year, citing tight liquidity and limited new projects. Total accumulated losses stood at 1.46 billion dirhams.
Shareholders also voted to authorise Arabtec to appoint AlixPartners and Matthew Wilde, or any other person or persons the board considers fit, as liquidator, Reuters reported citing two sources familiar with the matter.
(Reporting by Seban Scaria; editing by Anoop Menon)
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