The Dubai Court of the First Instance has accepted Arabtec Holding’s petition to open bankruptcy proceedings of the company and its subsidiaries. The court has also decided to appoint trustee for each entity.
Trustees have been appointed for the holding company, as well as six subsidiaries which are joining parties in the proceedings: Arabtec Construction LLC, Austrian Arabian Readymix Concrete Co LLC, Arabtec Precast LLC, Arabtec ConstructionsLLC, Emirates Falcon Electromechanical Co . EFECO (L.L.C.).
“The court ordered each appointed trustee to publish the bankruptcy decision of each entity, review its debts, deposit a list and a record of its creditors, and conduct all the procedures stipulated under the Bankruptcy Law within 35 days from the date of the appointment notification,” Arabtec Holding notified the Dubai Financial Market.
Each trustee was also instructed to prepare an initial report on assets of each entity as well as a list of all its managers and members of the board of directors and shareholders for the two years preceding the bankruptcy application, and the trustee’s opinion with respect to the management and the preservation of the company’s assets, to be deposited at the court within two weeks.
Another hearing will take place at the court on 26 July 2021.
News that Arabtec shareholders had voted to liquidate the company broke in September 2020 following $216 million of losses in the first half of the year.
(Writing by Imogen Lillywhite; editing by Daniel Luiz)
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© ZAWYA 2021