Abdullah A. M. Al-Khodari Sons Co. has announced updates in its financial restructuring process as one of the bankruptcy law’s procedures.
The company indicated that the financial restructuring secretary, Saleh Abdullah Al-Naeem, has launched the procedure on the portal of the bankruptcy committee, and invited the company's creditors to submit their claims.
A number of company’s creditors - whose debt originated before launching the procedure – have submitted their claims to the secretary during the statutory period announced by the secretary on the portal of the bankruptcy committee, Al Khodari added in a bourse statement.
The secretary has prepared a list of the creditors' claims and submitted it to the court along with his recommendation regarding each claim, whether to accept or reject or to be reviewed by an expert.
The company's management provided the secretary with a detailed list of its contracts in force and a detailed report containing which contracts it wishes to continue and which ones it wiches to terminate.
The Secretary reviewed the contracts list and issued a decision to terminate some of the contracts, whose termination is necessary to protect the interests of the majority of creditors and to implement the decision after its preparation and ratification.
Al Khodari added that the court is currently studying the list of creditors’ claims, in preparation for its adoption and then determine the time frame within which the company should submit a financial restructuring plan, which will be put to a vote by the company's creditors and shareholders.
The financial impact resulting from this procedure is hard to predict at the moment, and the firm will reveal updates should any occurs.
In July, Dammam commercial court issued a ruling to initiate Al Khodari’s financial restructuring under Saudi Arabia’s new bankruptcy law, Argaam reported.
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