SPM takes measures for companies with accumulated losses over 50%

Saudi Paper Manufacturing Co.’s (SPM) board of directors has recommended taking measures and procedures for Saudi-listed companies with accumulated losses above 50 percent of capital.

On Sunday, the board was notified that the company’s accumulated losses reached 52.7 percent of capital or SAR 129.13 million.

SPM could be shut down on Nov. 13, under the Saudi Companies Law, if it fails to hold an extraordinary general assembly meeting within 45 days from the date its board of directors was informed of losses, the Saudi firm said in a bourse filing.

Earlier this month, the company’s board recommended a 39.2 percent capital cut to offset accumulated losses followed by a capital hike of SAR 150 million through a rights issue, as reported by Argaam.