troubled

Burj Khalifa interior design firm says owed $22m by troubled Arabtec

Dubai-based Depa, the global interior solutions group which worked on the Burj Khalifa, said on Monday that it is owed AED82 million ($22.3 million) from troubled construction giant Arabtec.

In a statement to Nasdaq Dubai, Depa said it awaits clarity on the outcome of Arabtec’s discussions and any liquidation application that may be submitted to the competent courts so as to determine the likely impact on the company.

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“To the extent that Arabtec or member(s) of its group enter liquidation, this would likely have a material impact on Depa’s financial performance and financial position,” it said.

“Depa continues to pursue its pipeline of opportunities and deliver on its secured projects. Management is implementing Depa’s group-wide transformation and restructuring programme and continues to take action to reduce Depa’s cost base to protect its financial position, in addition to the continuation of its non-core asset disposal programme,” it added.

Depa said further announcements will be made to the market “as and when appropriate”.

Arabtec is Depa’s second largest shareholder, owning 24.18 percent, but the majority of Depa’s shares are held by individuals, funds and institutions not connected with Arabtec, the company said in a statement. 

Arabtec also has a minority representation on the board of directors of Depa.

In a statement issued to the Dubai Financial Market on Monday, Arabtec said it would be holding a meeting on Wednesday to discuss its next steps.

Last week, Arabtec confirmed that shareholders had voted to discontinue with the company and dissolve it due to its untenable financial situation.

Video: Arabtec – the projects