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Arabtec Holding Company decided, at a meeting of the General Assembly today, Monday, that it will as soon as possible submit a request to the competent court to declare the company bankrupt and liquidate it.
This decision was taken after a period of two months of discussions with the main stakeholders, on the basis of the decision taken by the shareholders at the General Meeting of September 30, 2020.
At the general meeting, a request presented by shareholders representing more than 5% of the company’s capital to annul the decision to liquidate the company and authorize the board of directors to submit a request to the court for bankruptcy and liquidation as soon as possible.
The shareholders representing 86% of the capital of the company voted not to annul the previous general decision voted on September 30, 2020 concerning the non-continuity of the company and to authorize the board of directors to apply to the court to declare bankruptcy and liquidate, and dismiss the decision on the going concern and restructuring of the company, which required approval. 75% of the votes.
The general assembly decided, by majority, to exempt the members of the board of directors and the auditors from rejecting the request for annulment of the decision of the previous general assembly concerning the absolution of the members of the board of directors. administration and auditors, and to agree to bring an action for damages against the members of the board and the auditors.
During the general meeting, Antoine Abi Rashid, legal director and secretary of the Arabtec board of directors, declared that the decision to liquidate the company is the only option available to the board of directors in application of what had was decided by the previous general meeting of September 30, and this result is consistent with some of the subsidiaries that will also go into liquidation, and therefore there is no reason to take a decision to change the schedule, and the company will file the request for bankruptcy with the competent court as soon as possible.
He added that the company did not have the liquidity or the confidence to provide it to allow it to continue its work given its failed attempt to obtain liquidity from internal sources or financial support from banks, government agencies and stakeholders.
Abi Rashid pointed out that due to its weak financial situation, the company has laid off most of its employees, with a total of 10,000 employees since the previous general meeting, except for a small percentage of need.
According to a statement from the company, the board of directors confirmed that it is no longer possible for the company to continue to operate without entering into formal insolvency proceedings, and that it has become in the interests of the stakeholders of the company to place the company into compulsory liquidation for bankruptcy (subject to court approval) as soon as possible.
In view of the links between some of the company’s subsidiaries, the claim before the courts will include that Arabtec Construction Company, Arabtec Construction Company, Arab Austrian Ready Mix Concrete Company and Arabtec Precast Company (collectively referred to as the relevant companies) will also be placed in liquidation at the same time. And, at this time, no claims will be made to the competent courts regarding the company’s other companies, the statement said.
Pending the appointment of an Insolvency Officer, the Company will continue to engage with key stakeholders with the aim of seeking options for preserving value and making every effort to avoid subject these subsidiaries to formal bankruptcy procedures for insolvency purposes.
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