Tihama secures initial court ruling on approval of subsidiary liquidation

Logo of Tihama Advertising and Public Relations Co.

Tihama Advertising and Public Relations Co. announced the issuance of the initial ruling, dated Feb. 25, approving the liquidation of its wholly-owned subsidiary Tihama Education Co. and the appointment of the bankruptcy trustee.

The planned move is expected to result in a profitable impact on the parent company’s consolidated financial statements, which will positively affect its financial results during the period in which the liquidation procedures are completed. This is due to excluding the net liabilities and accumulated losses associated with that subsidiary, Tihama said.

The financial impact resulting from the subsidiary liquidation will be recognized in accordance with the International Financial Reporting Standards adopted in Saudi Arabia, it added.

According to Argaam’s data, Tihama’s board of directors approved on Nov. 18, 2025, the liquidation of its subsidiary Tihama Education Co., under the Bankruptcy Law. It cited the subsidiary’s accumulated losses, unpaid creditors, and obligations outstripping assets as reasons behind the planned liquidation move.