Al-Khodari shareholders approve financial reorganization proposal

Logo of Abdullah A. M. Al-Khodari Sons Co.

Abdullah A. M. Al-Khodari Sons Co.'s shareholders approved the financial restructuring proposal, under the Saudi Bankruptcy Law, during the general meeting held on Aug. 1, according to a filing to Tadawul. 

The meeting was chaired by Bader Al-Tamimi, secretary of the company’s financial reorganization procedure, in light of what was stipulated in Article 3 of the Rules for Organizing Meetings issued by the Bankruptcy Committee.

According to data compiled by Argaam, the Commercial Court in Dammam accepted, on July 1, the company's proposed financial reorganization plan.

The proposal includes increasing the capital by converting the debts of all categories of creditors into shares of SAR10 each, bringing the new capital to SAR 2.38 billion.

The financial reorganization plan considered the worst future possibilities to protect the company from any default that may arise and cause the proposal to fail.

There are no other solutions with the board other than what has been provided and will be the last chance for creditors and shareholders to protect the company.

The court set Aug. 4 as a date for creditors’ voting on the proposal.