Bisha Agricultural Development Co. (BISACO) said Al Khabeer Capital has stopped proceeding with a restructuring study for the company over a financial dispute.
A dispute started between both parties when Saudi Bisha rejected to settle a remaining 50 percent payment, unless Al Khabeer submitted a finalized turnaround plan to the Capital Market Authority (CMA).
Al Khabeer Capital has already completed phases I and II of the revamping plan.
Bisha's accumulated losses reached SAR 66.7 million by the end of November, accounting for 133.4 percent of its capital. Trading has been halted on the stock since its losses exceeded 50 percent of capital.
Even if the agricultural company decided to liquidate, the value that the company would receive would not be equal to the book value per share, an external auditor has said, while doubting Bisha’s going concern.
Meanwhile, the company’s management said it is in the process of using an agricultural land plot for residential purposes to capitalize on selling proceeds to offsett accumulated losses.
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