Dubai’s Arabtec Holding, a construction firm, announced its plan to use AED 1 billion ($272 million) of the company’s reserves to wipe out some of its accumulated losses, reported Arabian Business.
The AED 1 billion will cover 44% of the company’s accumulated losses, with leftover reserves of AED 148 million, reported Construction Week Online.
AlixPartners, a restructuring advisory firm, has been hired by Arabtec to help it strengthen its capital structure and reform its business.
The company’s financial woes are attributed to the difficult industry environment with the stump of Gulf economies and governments restraining spending due to low oil prices.