Al-Khodari CEO says restructuring plan underway

Abdullah A. M. Al-Khodari Sons Company is working on a restructuring plan that will be presented to creditors on time and in accordance with the country’s regulations, CEO Fawwaz Al-Khodari told AlArabiya TV.

“The commencement of the financial reorganization process has permitted us to negotiate with creditors,” he said.

The company has a commitment of SAR 1.5 billion as of September 30, 2018, including SAR 750 million I bank debt, SAR 500 million to suppliers, and SAR 350 million towards related entities (holding company).

There are a total of 10 creditors, including finance firms and banks, Al-Khodari said.

The company’s restructuring plan options such as increasing capital, reducing capital, and recapitalization of debt, which was declined by shareholders last year, he said, adding “if the proposal was accepted it could have reduced the damage and helped the firm complete some projects.”

According to Al-Khodari, the restructuring plan presented on Monday didn’t disclose the debt figures, as it was only aimed at updating shareholders about the firm’s position and steps taken since the announcement of losses in February 2019.

The company losses are close to 200 percent of its share capital, the CEO said, adding the firm is currently working with external auditors to ascertain and announce the exact amount of losses.

According to the data compiled by Argaam, the commercial court ruled early July the reopening of the financial reorganization process of the company, and appointed Salah bin Abdullah Al-Naeem as secretary of the financial reorganization process.

On Monday, the company presented the restructuring plan in presence of shareholders, and a representative of the secretary who was appointed by the commercial court of Dammam.