Depa, the global interior solutions group, has said that it is awaiting clarity on the impact of Arabtec’s shareholder vote to liquidate the company – which was announced last week – despite having a $22 million exposure to the construction giant.

In a statement released on its website, Depa said that it “awaits clarity on the outcome of Arabtec’s discussions and any liquidation application that may be submitted to the competent courts so as to determine the likely impact to Depa.”

“Depa is neither wholly owned by nor controlled by Arabtec. Whilst Arabtec is Depa’s second largest shareholder (owning 24.18%), the majority of Depa’s shares are held by individuals, funds and institutions not connected with Arabtec.  Arabtec has a minority representation on the board of directors of Depa,” the statement continued.

On April 21, 2020, Depa announced its consolidated audited financial statements for the year ended December 31, 2019. These financial statements confirmed that the interior solutions group had a financial balance owed from Arabtec of approximately $22 million, in line with the Arabtec Group being a material trading partner to Depa Group.

Depa’s exposure to the Arabtec Group remained at a similar level as of 30 September 2020, the statement added. However, it did warn that if Arabtec or member(s) of its group entered liquidation, this would likely have a material impact on Depa’s financial performance and financial position.

However, despite these challenges, Depa reiterated that it continues to pursue its pipeline of opportunities and deliver on its secured projects.

“Management is implementing Depa’s group-wide transformation and restructuring programme and continues to take action to reduce Depa’s cost base to protect its financial position, in addition to the continuation of its non-core asset disposal programme,” the statement concluded.