DUBAI Feb 12 Loss-making Dubai construction
firm Arabtec is working with boutique investment bank
Moelis to study options for the company's capital
structure, sources familiar with the matter told Reuters on
A mandate for restructuring advisory firm AlixPartners to
reduce overheads at Arabtec was completed at the end of last
year, the sources said, declining to be named as the information
is not public.
The sources said that the study was in its early stages and
that Arabtec's board had not decided on specific action. One of
the sources said Moelis was also expected to advise Arabtec on
its balance sheet and liquidity ratio.
Arabtec did not respond to requests for comment, while a
spokesman for Moelis could not immediately be contacted.
The Gulf construction sector is in a severe slowdown after
the slump in oil prices forced governments to rein in spending,
compounding internal problems at Arabtec, which has seen several
senior management changes in the last few years. Arabtec's board
was to meet later on Sunday to discuss its fourth-quarter
The company made a loss attributable to owners of the parent
of 225.5 million dirhams ($61.4 million) in the third quarter,
compared with a 944.8 million dirham loss a year earlier.
(Editing by Andrew Torchia)