CMA issues financial restructuring procedures under bankruptcy law

Saudi Arabia’s Capital Market Authority (CMA) issued on April 3 the procedures of applying for financial restructuring under the bankruptcy law.

The issuer of Tadawul-listed securities must immediately disclose to both the authority and the public all related developments and state their impact on the business or the issuer's financial position, the market regulator said on its website.

Issuers must also disclose any non-confidential material developments included in the submitted reports upon applying for financial restructuring.

Also under the bankruptcy law, if the accumulated losses reached 50 percent of capital or more, the securities will be suspended until the court orders commencement of the financial restricting procedures, unless the issuer is banned from carrying out activities.

The securities will be delisted if the court decides to terminate the financial restructuring procedure and orders liquidation.

For the detailed procedures visit CMA website.