ADX-listed Abu Dhabi building materials company settles legal dispute
New deal comes as major boost for Abu Dhabi National Co. for Building Materials
Dubai: The ADX-listed Bildco (Abu Dhabi National Co. for Building Materials) has reached a settlement on its legal dispute with Ajman Bank.
The building materials firm had gone through an extended restructuring process, and the deal with Ajman Bank provides it with additional leeway in managing its short- to medium term operations.
‘A debt settlement contract was signed and the legal dispute ended’ with Ajman Bank. It also saw Bildco getting a 13.45% discount on the amount awarded.
Ajman Bank then ‘waived all lawsuits and released the mortgage on the factory machines,” said a statement.
“The full agreed amount was paid and legal procedures are being completed.”
This removes the 'difficulties that stand in the way of implementing the restructuring plan and returning the company to its natural position as the oldest joint stock company in the country', the statement added.
The UAE's construction sector is going through a full-blown boom time, and this is what Bildco will hope to cash in on.
After losses in 2021 and 2022, the company had moved back into profit of Dh24.9 million last year.
In November, the company issued a statement that its accumulated losses were at Dh331.5 million.