GulfBase Live Support
Leave a message and our representative will contact you soon
20/10/2014 07:21 AST
Saudi contractor Mohammad Al-Mojil Group's (MMG) board had approved a recovery plan that use most of its existing capital base to pay off debts and new cash raised through a share issue, it said on Sunday.
The firm, which got into difficulty after over-extending itself trying to take advantage of a boom in construction in the kingdom, has not traded on the Saudi bourse since July 2012, when its shares were suspended by the regulator after breaching rules relating to accumulated losses.
MMG said in September its accumulated losses for the period ending Aug. 31 stood at 2.689 billion riyals ($717.1 million), equivalent to 215 percent of its paid-up capital. Saudi shares are suspended once losses pass 75 percent of capital.
Under the plan approved at a board meeting on Thursday, MMG's capital will be cut from 1.25 billion riyals to 125 million riyals, creating one share for every 10 shares currently possessed, it said in a bourse filing. Such an accountancy technique will allow the company to effectively write off some of its accumulated losses.
At a later stage, it said, its board will recommend increasing the capital again via a rights issue and/or through preferred shares to help it restructure its operations.
Also part of the plan would be a "significant reduction" in the amount payable to the lenders in respect of outstanding sharia-compliant loan facilities, it said.
All these steps would be subject to the outcome of negotiations with potential new investors, existing lenders and regulatory approval, the statement said.
Should the restructuring go ahead, it is hoped that all legacy projects would be completed in the first quarter of 2015, allowing the business to return to profitability in subsequent quarters as it takes on new business opportunities, MMG added.
Arab News
02/05/2017
With reference to the Capital Market Authority's (the "CMA") announcement published on 04/05/2016, in which the CMA called on the boards of directors and shareholders of listed companies with losses
Tadawul
24/04/2017
Mohammad Al Mojil Group announces that the Acting CEO Mr. Nauman Sohail has submitted his resignation from his position on 19-04-2017 with effect from 19-04-2017 due to (i) prevalent uncertainty surr
Tadawul
13/04/2016
Mohammad Al Mojil Group announces that the CEO Mr. Hafiz Al Shafei has submitted his resignation from his position on 05-04-2016 with Board acceptance and effect from 13-04-2016 due to Personal Circu
Tadawul
Ticker | Price | Volume |
---|---|---|
SABIC | 114.77 | 5,915,941 |
05/04/2018
SABIC announced the successful completion of the pilot operation of the Methyl Methacrylate Monomer (MMA) and Poly Methyl Methacrylate (PMMA) plants and the commencement of commercial operations.
Saudi Gazette
05/04/2018
Standard & Poor’s (S&P) has affirmed QIB’s Issuer Credit Rating at A-, Qatar’s leading Islamic bank has said in a release. According to S&P, the major contributing factors strengthening QIB’s rating
Gulf Times
05/04/2018
Qatar National Bank (QNB) aims to increase its profit by 5-8 percent this year and loans and investments by 10-12 percent, helped by expansion into faster-growing Southeast Asia markets, its CEO told
The Peninsula
04/04/2018
Doha Bank has announced the official inauguration of its Chennai Branch, in the southern Indian state, will be held today. This is Doha Bank’s third city in India after its successful establishment o
The Peninsula
04/04/2018
Bank of Sharjah said it has engaged SHUAA Capital International as liquidity providers for its shares and will commence the activity from April 4. SHUAA Capital International shall not hold more than
Gulf News