Saudi court approves Wafa Insurance’s financial restructuring plan

The Riyadh commercial court approved the financial restructuring plan submitted by Saudi Indian Company for Cooperative Insurance (Wafa Insurance), as well as the list of the final claims for voting.

Wafa Insurance said in a statement to Tadawul on Thursday that shareholders will vote on the list on Feb. 24, while creditors will vote on Mar. 2, 2020.

The insurer added it will liaise with the court-appointed secretary to arrange the voting and provide shareholders and creditors with a copy of the financial restructuring plan.

The company indicated that it is currently difficult to estimate the related financial impact.

“We will incur charges related to organizing meeting for shareholders and creditors, which cannot be assessed right now,” the statement said.

In February 2019, a Saudi court overturned a previous decision rejecting Wafa Insurance’s request to undertake a financial restructuring.

In July 2019, the company submitted a plan to the relevant court, while the latter required more details about the procedures and steps to be taken by the company and granted the insurer 150 days to submit the amended plan.