Arabtec
 

So then... who here (does or shall I say, no longer) works for Arabtec?

Re: Arabtec
 

This is an interesting one - are the powers that be still the major shareholders in Arabtec?

Re: Arabtec
 

No idea, but today (if what I've seen is correct) they voted to liquidate it.


now in meedia: https://www.meed.com/shareholders-vo...uidate-arabtec [see what I did there]

Re: Arabtec
 

Nope but know a few there.

Don't know enough about it all but I'm sure their supply chain will just get ****ed in this, so we could expect to see a few more casualties to follow?

I wonder where you even begin with liquidating a business like that.

Re: Arabtec
 

I worked on the liquidation of a company called TXU. It was a copy-paste of Enron in terms on complexity, business model and size. I left after three years and we still had not finished. The complexity comes from intragroup transactions, ie if they own stakes in their subcontractors - which they probably do here.

everyone will lose apart from the government who will buy up the scraps for nothing.

Re: Arabtec
 

Worse than that they are also in a lot of JV contracts, so that has to be figured out. Especially if they were fully integrated JVs. I doubt anyone has being supplying to them for a long time on anything other than a cash basis - historic debts I'm sure are unrecoverable.

One good thing is that they have been allowed to close, not to be another zombie building company completely ****ing the market with low tender rates for viable construction companies.

Re: Arabtec
 

It got to the point with the one I worked on that we were going to just donate the left overs to charity. It was not cost effective to calculate it and allocate it to everyone that was owed something. Can’t see that happening here :)

Re: Arabtec
 

You mean, there was such little value left for your fees to be paid for out of the remaining stuff?

Re: Arabtec
 

There's been a less than conspicuous exit of a good number of decent partners in recent years.

What's left, on the whole - couldn't deliver a letter, let alone a project.

Re: Arabtec
 

If you keep the race to the bottom going long enough, eventually you reach the bottom. ME tendering became a pyramid scheme where the advance payment on each new project was used to prop up the losses on the previous project.

Re: Arabtec
 

It's not that different in the UK for a lot of the contractors to be fair.

It's just moving cash and hoping for the best. I'm always staggered at the margins some will be happy to bid and work at, whilst also carrying ALL the risk. Mind blowing.

Re: Arabtec
 

Pretty much. The liquidator is always paid first.

Re: Arabtec
 

At least they paid the salaries before they bumped themselves . Was on the cards for 18 months . Crap outfit and worse to work for .