Creditors warned to act fast over money owed by #Dubai's Arabtec - Arabianbusiness

Creditors warned to act fast over money owed by Dubai's Arabtec - Arabianbusiness

Creditors of fallen Dubai-based construction giant Arabtec have been warned they must not waste any time in the pursuit of outstanding debts owed to them as the company edges closer towards liquidation.

Under the relatively new UAE Bankruptcy Law there are three insolvency procedures available – preventative composition, rescue within bankruptcy, and liquidation within bankruptcy.

Mark Raymont – partner construction, advisory and disputes, with Pinsent Masons Middle East, told Arabian Business: “Under all three procedures, creditors are required to provide evidence of their debts including supporting documents within reasonably tight timescales. Any realisations are to be paid to the court or trustee before distribution in accordance with the creditor order of priority.

“It seems likely that Arabtec is intending to pursue liquidation within bankruptcy, and the aim will be to try to generate as much value as possible for creditors, most likely through the sale or distribution/disposal of its remaining assets.”

Arabtec is seeking to meet an end of November deadline set by shareholders to submit the liquidation application. The board met on Sunday to discuss the next steps in the process.