Dubai: The UAE's biggest construction company, Arabtec, has let go of its CEO - Wail Farsakh. The company is currently in the liquidation process and changes at the top was something that the marketplace was talking about.
Farsakh had been in the saddle for the last year and had come in at a time when the company was still trying to arrest its slide into bankruptcy. There was a phase when it was felt that Arabtec would find strategic investors - and the money - to survive.
The liquidation when complete would represent the biggest such in UAE's corporate history. It will also be the biggest since the amended Bankruptcy Law came into effect.
- November 30, 2020 - Arabtec shareholders throw in the towel and decide to go ahead with liquidation
- December 17, 2020 - Arabtec files with the local court to initiate liquidation.
- February 4, 2021 - Its CEO, Wail Farsakh tenders resignation. So, what's next?
Constant turnover
Before Farsakh came on board, Arabtec had seen multiple changes at the top, as well as within its senior management team. Each CEO was tasked with finding a solution to step the financial bleeding, but matters only got worse.
The Arabtec liquidation is now in front of the local court, and the company’s creditors as well as subcontractors are likely to have come up with what is owed to them. Figures being bandied around talk of upwards of Dh10 billion plus.
Uncertain projects
Informed sources say that Arabtec – whose legacy includes Burj Khalifa and Louvre Abu Dhabi, to name just two - has been stripped off some key projects it had been involved in. Arabtec is yet to confirm or deny that this is the case.
Interestingly, through all the crisis, one of its blue-chip subsidiaries Target Engineering picked up a $38.6 million offshore marine works in Saudi Arabia's Jubail City. This was in November.
Arabtec is expected to announce who will take over as interim CEO.
