Arabtec to approach banks and shareholders for more cash | The National

Arabtec to approach banks and shareholders for more cash | The National:

"Arabtec Holding, the country’s biggest-listed construction company, may need to tap shareholders in the future to shore up its balance sheet to bid for more prestigious contracts, according to analysts.

Arabtec’s board will meet on Monday and discuss plans to talk to shareholders and banks about improving its capital structure, less than two weeks after shareholders approved a move to use Dh1 billion of reserves to writedown losses, the company said yesterday in a statement to the Dubai Financial Market.

The company had accumulated losses of Dh2.27bn by March 30 after posting negative results in six successive quarters, which meant it was close to breaching a market rule that states companies are not allowed to accrue losses amounting to more than 50 per cent of its share capital. Arabtec’s share capital stood at Dh4.6bn at the end of the first quarter.

"



'via Blog this'