Dubai-listed Arabtec Holding is to receive a $108.9m debt facility to help support it during challenging conditions in the regional construction market, according to a company statement on the Dubai stock exchange (DFM).
The facility will be provided by the Abu Dhabis Aabar Investments, which owns 36 per cent of the contractor.
The company statement added that the additional funding will be used for delivering ongoing and newly awarded projects.
Last month Arabtec said it plans to use AED1bn ($272m) of its statutory reserves to write off part of its accumulated losses, in line with the companys restructuring process.
Arabtec will use of AED1bn will cover 44 per cent of the companys accumulated losses, leaving a reserves balance of AED148m.
Arabtec has also hired US restructuring advisory firm AlixPartners to help it strengthen its capital structure and reform its business. The work of advisers in drawing up a restructuring plan is going very well and should be completed very soon, said Mohamed al-Mehairi the firms vice-chairman.
Like many regional contractors, Arabtec has struggled with the slowdown in regional economies as Gulf governments slash spending and cap infrastructure products on the back of lower oil prices.