Dubai: Arabtec Holding asked banks this week for a three-month standstill on debt repayments for its subsidiary Target, sources said, as the Dubai-listed builder that is facing liquidation seeks to save some of its business. Target specialises in oil and gas projects and marine work with operations in the UAE, Qatar and Saudi Arabia.
Shareholders, including Abu Dhabi state fund Mubadala Investment Co., voted last month to liquidate Arabtec after losses deepened due to the coronavirus crisis. Arabtec told banks that Target had been identified as a sustainable business and could be protected from the collapse of the wider group if creditors agreed to a standstill.
The company did not tell lenders how much of their lending to Arabtec was allocated to Target. Arabtec had total liabilities of about $2.75 billion at the end of June, including almost $500 million in bank borrowing.