Arabtec built the tallest building in the world, the Burj Khalifa.
Dubai:
The UAE construction giant that built the world‘s tallest building, the Burj Khalifa, Arabtec, has officially announced that it will be put into liquidation after stakeholders found the financial situation “untenable”.
“In recent years, the limited liquidity in the construction sector has had an impact on 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 the efforts to obtain legal and commercial rights and a restructuring of the finances and operations of the company, the situation in which Arabtec finds itself today is untenable,” 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, stakeholders voted “to shut down the company and dissolve it because of its unsustainable financial situation”.
Management would propose a “liquidation plan to maximize stakeholder value through a controlled and effective program” after obtaining stakeholder approval.
“Over the coming weeks, the board of directors and management of the company will work closely with regulators to maximize value for all stakeholders,” said the chairman. “Our current priority is to ensure that all those directly affected by this decision are treated fairly during this difficult time.
According to Gulf News, stakeholder reports gave the green light for the disbandment on Wednesday. On October 1, the Dubai financial market stopped trading in the shares of the company that built the tallest building in the world.
