A group of Arabtec shareholders are making a last-ditch attempt to save the construction giant from liquidation and have added new items to the agenda of the company’s general assembly meeting to be held later on Monday.
According to a filing on the Dubai Financial Market, shareholders representing more than 5 percent of the capital of Arabtec Holding want the meeting to vote on a resolution to cancel a decision made by shareholders on September 30 to dissolve the company due to its untenable financial situation.
The resolution of the shareholders granted the Arabtec board a maximum period of two months to allow for discussions with the main stakeholders before submitting the liquidation application.
But now, some shareholders are urging a different approach and have asked for the meeting to consider a special resolution for the “continuity and restructuring” of the company instead of dissolving it.
A second added agenda item also suggests disatisfaction over the way the decision to liquidate Arabtec was taken, with three shareholders seeking approval to file a claim of liability against board members and auditors.
Experts say the impact of the liquidation of Arabtec will send “reverberations” throughout the region’s construction industry, with the repercussions felt on a much wider scale than simply those who are directly involved with the company and its current pipeline of projects.
Arabtec Holding was valued at about AED30bn ($8.17bn) at its peak in 2014 and is now worth AED795m, with the stock down 60 percent this year alone.
SOurce:https://www.arabianbusiness.com/construction/455289-arabtec-shareholders-launch-last-ditch-bid-to-save-construction-giant