Arabtec: Creditors await Dubai Court’s next move in getting back their Dh10b plus | Property – Gulf News
Creditors to Arabtec, the UAE construction giant that has filed for bankruptcy, will have to wait for a Dubai court’s next judgement to see how - or whether - they can recover their dues, estimated to be in the billions of dirhams.
First, the court-appointed panel of experts will have to come up with their findings on whether Arabtec should proceed with the liquidation or whether there are other less drastic options available for the company that built the Burj Khalifa and the Louvre Abu Dhabi. But the submission by the panel itself could take time.
Once that’s done and “Assuming the panel concludes that insolvent liquidation is the correct course of action, the court is likely to accept the bankruptcy application,” said Matthew Escritt, Partner at the Dubai office of Pinsent Masons, the law firm. “The moratorium on payments and other claims starts when the application is accepted by the court.”
It was late last year that a majority of Arabtec shareholders decided that pulling the plug was the only option left to them as losses kept mounting and chances of a new or existing investor coming up with new funding turned remote. The construction company suffered some grueling losses as new project activity slowed down. Some of its non-UAE operations too took a hit, which was reflected in the first-half 2020 results.
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