Abu Dhabi: Arabtec Holding, the Dubai-listed contractor, signalled it will continue discussions with its major shareholders and banks regarding ways to enhance the company’s capital structure. This came during a meeting today held by Arabtec’s board of directors who approved the continuation of such discussions. The board delegated the authority to the acting chief executive officer, Saeed Al Mehairbi, to finalise the negotiations and execute any such agreements.
The announcement to reach out to banks and major shareholders for capital comes less than two weeks after Arabtec said it will pull Dh1 billion out of its statutory reserve to extinguish 44 per cent of the losses it has accumulated so far.
The decision to resort to the statutory reserve left analysts questioning whether Arabtec will be able to breakeven this year, and signalled the company was running out of other options for liquidity.
During the meeting today, Arabtec also accepted the resignation of Mohammad Al Fahim from the board of directors, and appointed Jamal Saeed Al Nuaimi as new board member to replace him.
Al Nuaimi will also replace Al Fahim as a member of the Nomination and Remuneration Committee.
Additionally, Arabtec appointed Ghannam Al Marouei as member of the Audit Committee to replace Mohammad Al Merhairi, and appointed Tariq Al Masaood Al Merhairbi as member of the Nomination and Remuneration Committee to replace Khalifa Al Romaithi.
