Court orders Al Mojil group to auction assets

A court ordered Mohammad Al Mojil Group (MMG) to auction 21 percent of its fixed assets under a legal directive issued on Dec. 22, 2016, the contractor said in a statement to the Saudi bourse.

Another directive dated Nov. 22, 2016 banned the company from removing assets from its buildings, it added.

MMG noted that in both cases it had not received official notification, and became aware of the orders when representatives from the company went to the police station to inquire about the situation.

“The Company is not aware who would be the beneficiaries of the cash collections thereon,” the contractor said in the statement. “Upon requests to the Competent Authorities, the Company has been unable to obtain copies of the Directives.”

MMG’s stock was suspended from trading by the Capital Market Authority (CMA) in July, 2012 over losses, after it had over-extended itself trying to take advantage of a construction boom in the kingdom.