Tihama to liquidate inactive subsidiaries with financial losses, legal risks

Logo of Tihama Advertising and Marketing Co.

Tihama Advertising and Marketing Co.'s board of directors approved, on March 21, taking liquidation and voluntary liquidation procedures for inactive subsidiaries that cost the company annual financial losses and legal risks, after reviewing the board's legal and financial study of the general situation of subsidiaries and sister companies, according to a statement to Tadawul.

This came out of the board’s concern to protect the company and its interests and correct the legal conditions to address Tihama’s situation. This is in order to minimize and prevent financial losses and legal risks and to implement the company’s strategic plan, it added.

Accordingly, the board decided to begin voluntary liquidation procedures for subsidiaries Rapid Advertising Company for Publicity and Advertising, Estidama International Real Estate Co., Tihama International Advertising Co., Tihama New Media Company for Advertising and Advertising, and Tihama Holding Company for Commercial Investment.

It also greenlit the commencement of liquidation procedures, under the Saudi Bankruptcy Law, for the Tihama Modern Library Co. This is in addition to nodding to continuing the voluntary liquidation procedures for International Services Co.

Further, the board ratified taking the necessary legal measures for Saudi Advertising Materials Co. Ltd., Gulf Systems Development Co., and Renewable Technology Co.

The board’s nod on the follow-up on National Consolidated Distribution Co. regarding developments in the submitted bankruptcy application was also granted. This is besides approving the follow-up on the legal situation and the study of legal procedures necessary to liquidate, write off, or exit from Aventus Global Co., United Journalists Co., Tihama Global Co., and Fogo Co. — all located outside the Kingdom.

The company also said the related financial impact is not yet clear, adding that it will duly announce any relevant developments.