Emaar EC completes all phases of financial position restructuring

Emaar Economic City completed its financial restructuring after listing new shares issued to a creditor and converting debt into equity, as part of a broader plan to strengthen its capital structure.

Emaar The Economic City (Emaar EC) announced the listing of new shares issued to the creditor on Dec. 25, through which the outstanding debt was converted.

In two separate statements on Tadawul, the company said that with the completion of this step, all phases of its financial restructuring plan have been finalized.

It explained that the plan included rescheduling bank facilities, obtaining a new shareholder loan, reducing the company’s capital to offset accumulated losses, and subsequently increasing capital through debt conversion.

According to Argaam data, Emaar EC’s extraordinary general meeting (EGM) recently approved a capital increase of 68.74% through the conversion of debt owed to the Public Investment Fund (PIF), amounting to SAR 4.12 billion.