Bishah Agriculture Development Co.’s accumulated losses amounted to SAR 69.47 million, or 138.95 percent of its capital, the company said in a statement to Tadawul.
The declines were attributed to the massive losses incurred by the agricultural firm in February 2006 following the Saudi market crash as the former board of directors traded in local stocks.
The company’s projects were also stalled due to the drought that hit Bishah province.
In addition, Bishah’s SAR 50 million capital, which was depleted in the existing projects, has limited available investment opportunities, the statement added.
Meanwhile, the company board of directors failed to obtain regulatory approvals for capital hike and for converting the agricultural complex’s land to a residential land, so as to offset Bishah’s losses.
The company will announce developments about a restructuring plan by reducing its accumulated losses below 50 percent of capital, the statement added.
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