Abdullah A. M. Al-Khodari Sons Company’s board of directors has recommended holding an extraordinary general assembly meeting to discuss accumulated losses, the company said in a bourse statement.
During the meeting, shareholders should vote on whether the company should address accumulated losses through restructuring capital via several steps including a capital hike and a capital reduction to offset losses above 50 percent of capital.
The general assembly may also choose to address the issue through submitted a request to start financial restructuring as a procedure of the bankruptcy system or liquidating the company before the defined date in its bylaws.
Another EGM will be held to implement the first meetings decision after obtaining regulatory approvals.
The company’s management is still in contact with a number of consultants for the best mechanism to address the accumulated losses, the statement added.
Al-Khodari’s board has also decided to cancel a previous capital cut recommendation to SAR 355.80 million from SAR 557.81 million.
Last month, the company said that its accumulated losses as of Feb. 12, 2019 widened to SAR 1.11 billion representing 198.52 percent of capital, according to data compiled by Argaam.
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