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“Great financial crisis hits the famous Louvre in Abu Dhabi” ; Burj Khalifa’ builders ‘Arabtec goes b…

Dubai: The world’s tallest building, the Burj Khalifa in Dubai, and the famous Louvre in Abu Dhabi have gone bankrupt. Official sources have confirmed that the company, which is suffering a major financial crisis, has filed a bankruptcy petition in a Dubai court. In a filing with the Dubai Financial Market on March 18, the company stated that a paperwork case was pending in court.

Arabtec Holdings’ subsidiaries Arabtec Construction, Austrian Arabian Readymix Concrete Company, Arabtec Precast, and Emirates Falcon Electromechanical Company have all filed for bankruptcy. However, two other subsidiaries, Target Engineering Construction Company and Arabtec Engineering Services have been excluded from the paperwork. Target, which operates in the oil industry, recently won a 38 million dollar contract in Saudi Arabia. It is reported that the plan is to sell both companies. Arabtec Holdings has outsourced sales to Lumina Capital and Denovo.

Committee to examine the application
A Dubai court has set up a panel of seven experts in the field to examine the applications. The court directed the committee to prepare and submit separate overall reports on the financial condition of each of the subsidiary companies and the Arabtech holdings separately.

Subsidiary companies also went bankrupt                                                                                                          Shares of Arabtec were valued at 30.05 dirhams in May 2014. But in October 2020, it plummeted to 0.53 dirhams. The company’s shares have since been suspended from the market. In addition to the financial crisis that followed the development of Covid, administrative failures and the simultaneous expansion of operations into various sectors are estimated to have contributed to the collapse of the company.

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 400 million dollar liability
With losses of 216.18 dollars million in the first half of 2020 alone, the company is moving towards dissolution plans. The company’s total liabilities are estimated at more than 400 million dollars. Mashreq Bank and Abu Dhabi Commercial Bank are the major lenders to the company. In addition to paying the bank and subcontractors, employees’ salaries are also reported to be stagnant.

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