Dubai's Arabtec starts process for insolvent liquidation

Firm sticks to earlier shareholder ruling to discontinue business

  
Image used for illustrative purpose. An Arabtec logo is seen on buildings under construction in the Marina area of Dubai in this picture taken November 28, 2009.

Image used for illustrative purpose. An Arabtec logo is seen on buildings under construction in the Marina area of Dubai in this picture taken November 28, 2009.

REUTERS/Steve Crisp

Dubai builder Arabtec has started the liquidation process that will see the construction firm cease operations after several decades in the industry.

In a bourse filing on Thursday, the builder of the world's tallest tower Burj Khalifa, confirmed it has filed for insolvent liquidation.

The move is pursuant to the shareholder resolutions passed last September 30 and November 30, 2020, and to the board resolutions approved also on November 30, 2020.

In September, the shareholders agreed to discontinue the contractor's operations due to its untenable financial position and authorised the board to file for a liquidation. Last month, the company asked the shareholders to reverse its decision.

The company terminated thousands of its workers weeks after the liquidation plans were made public.

(Reporting by Cleofe Maceda; editing by Seban Scaria)

Cleofe.maceda@refinitiv.com

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© ZAWYA 2020


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