DUBAI, Oct 15 (Reuters) - 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 United Arab Emirates, Qatar and Saudi
Arabia, its website says.
Shareholders, including Abu Dhabi state fund Mubadala
Investment Co, voted last month to liquidate Arabtec after
losses deepened due to the coronavirus crisis.
Officials from Arabtec, which helped build the world's
tallest skyscraper in Dubai and the Louvre in Abu Dhabi, were
not immediately available for comment on Thursday.
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, said three
sources with direct knowledge of the matter.
The company did not tell lenders how much of their lending
to Arabtec was allocated to Target, the sources said.
Arabtec had total liabilities of about $2.75 billion at the
end of June, including almost $500 million in bank borrowing.
Arabtec's seven lenders, including Mashreq Bank and Abu
Dhabi Commercial Bank (ADCB), were providing feedback to the
request related to Target, the sources said.
Mashreq Bank and ADCB declined to
comment. Other lenders could not immediately be reached.
Arabtec's move to liquidate followed a first half loss of
$216.18 million and total accumulated losses of nearly $400
million. It said the pandemic had hit projects and lifted costs.
(Reporting by Hadeel Al Sayegh; Editing by Edmund Blair)