DUBAI - Dubai builder Arabtec Holding is asking shareholders to reverse a decision made in September to proceed with a bankruptcy and liquidation filing, according to a bourse filing on Monday.
Instead, the troubled builder is asking shareholders, scheduled to meet at a general assembly meeting on Monday, to approve the continuity and restructure the company, the filing said.
The contracting firm said the request was made "at the request of shareholders representing more than 5% of the company." It did not name the shareholders.
"It seems that these points have been raised by a group of investors. The fact that they’re being discussed at the general assembly doesn’t mean there’s a change of heart, it means that these points will be voted on," said Mohammed Ali Yasin, chief strategy officer at Al Dhabi Capital Ltd.
"And if the two major shareholders who voted on the liquidation in the last two shareholder meetings, vote against these two points, then those points will be voted down (not executed) and the process of liquidation that was started will continue."
Arabtec said the shareholders also asked investors scheduled to meet today to vote to cancel a resolution issued by the General Assembly for the last year, "concerning the release of board members and auditors, and the approval of filing a claim of liability against the board members and auditors." It did not provide further details for the request.
Shareholders, including Abu Dhabi state fund Mubadala Investment Co, voted in September to liquidate Arabtec after losses deepened due to the coronavirus crisis.
Arabtec's move to liquidate followed a first half loss of $216.18 million and total accumulated losses of nearly $400 million. It said the pandemic had hit projects and lifted costs.
(Reporting by Hadeel Al Sayegh; Editing by Kim Coghill) ((Hadeel.AlSayegh@thomsonreuters.com; +971566883310;))