DUBAI : Construction giant AE that built the tallest building in the world, the Burj Khalifa, Arabtec formally announced that it was going to be liquidated after stakeholders deemed the financial situation “unsustainable.”
“In recent years, limited liquidity in the construction sector affected the progress of Arabtec projects and this has been exacerbated by the effects of COVID-19,” said Waleed Al Mokarrab Al Muhairi, President, as reported by Gulf. News.
“Despite efforts to pursue legal and commercial rights and a restructuring of the company’s finances and operations, the situation Arabtec finds itself in today is unsustainable,” he added.
According to Gulf News, the announcement comes after “weeks of intense speculation” about the future of the entity. At a general meeting on Wednesday, the interest groups voted “to discontinue the company and dissolve it due to its unsustainable financial situation.”
Management would propose a “liquidation plan to maximize stakeholder value through a controlled and efficient program” after obtaining stakeholder approval.
“Over the next several weeks, the company’s board and management will work closely with regulators to maximize value for all stakeholders,” said the president. “Our current priority is to ensure that all people directly affected by this decision are treated fairly during this difficult time.”
According to Gulf News, it was reported on Wednesday that interested parties gave the go-ahead for the dissolution. On October 1, the Dubai financial market delisted the shares of the company that built the tallest building in the world.
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