Dubai: Arabtec Trustees Appointed
Gulf News (United Arab Emirates), 21 June 2021: Dubai’s Court of First Instance has appointed trustees for each of the Arabtec Group companies facing liquidation.
They have accepted the petition to open bankruptcy proceedings for Arabtec Holding and its subsidiaries including Arabtec Construction LLC, Austrian Arabian Readymix Concrete Co, Arabtec Precast,. Arabtec Constructions LLC, Emirates Falcon Electromechanical Co.; and another entity under the same title and Emirates Falcon Electromechanical Co.
They will review the accumulated debts and create a record of all creditors.
Each trustee overseeing an Arabtec Group entity facing liquidation has to submit a request to the court on the contractual and legal interests.
They have to prepare an initial separate report on the assets of each entity and its rights with third-parties. They must also list all managers and members of the board of directors and shareholders for the two years preceding the bankruptcy application. In addition, they have to submit their opinion on the management and the preservation of the company’s assets.
The Court have also stated all procedures in Federal Decree-Law No. 9/2016 (the Bankruptcy Law) must be completed within 35 days from the date of the trustee appointment notification.
Initial reports from the trustees have to be handed in within two weeks.
The announcement paves the way for the liquidation of the UAE’s biggest construction company and will also be the benchmark for future proceedings under the country’s recently amended Bankruptcy Law.
In addition, the Court has stayed all judicial procedures and execution procedures on the companies’ assets until a restructuring plan is approved or for 10 months from the date of the decision to open the bankruptcy proceedings.
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