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Arabtec Holding Image Credit: Bloomberg

Dubai: Arabtec Holding PJSC filed a bankruptcy petition to the Dubai Court on Sunday, March 21, according to a notification by the company to the Dubai Financial Markets (DFM). The listed company also said its subsidiaries were included in the bankruptcy petition.

These include Arabtec Construction LLC, Austrian Arabian Readymix Concrete Co. LLC, Arabtec Precast LLC and Emirates Falcon Electromechanical Co.

The firm added in its notification that the courts had decided, in February, to appoint a seven-member experts’ panel to look into the bankruptcy application.

The panel is tasked with the preparation of separate reports for each of the subsidiaries included, in addition to the preparation of a consolidated report on the holding company. The panel will also evaluate its financial position to understand the possibility of restructuring.

In the UAE, the bankruptcy application initiates protective composition procedure (PCP) which allows for agreements with creditors as an alternative to bankruptcy. The law also states that if the court decides that the conditions for bankruptcy have been met, it can enforce a suspension which prevents individual creditors from taking further legal action against the firm.