UAE construction giant Arabtec has formally announced that it was going into liquidation after stakeholders found the financial situation untenable.
“In recent years, limited liquidity in the construction sector impacted the progress of Arabtec’s projects and this has been exacerbated by the effects of COVID-19,” said Waleed Al Mokarrab Al Muhairi, Chairman, as reported by Gulf News.
He said: “Despite efforts to pursue legal and commercial entitlements and a restructuring of the company’s finances and operations, the situation in which Arabtec finds itself today is untenable.”
According to Gulf News, the announcement comes after weeks of intense speculation over the entity’s future.
In a general assembly meeting on Wednesday, the stakeholders voted discontinue with the company and dissolve it due to its untenable financial situation.
The management would come up with a plan of liquidation to maximise value for stakeholders through a controlled and efficient programme after getting the approval of the stakeholders.