Tihama says court opens financial reorganization procedures

Logo of Tihama Advertising and Public Relations Co.

Tihama advertising, Public Relations and Marketing Co.  announced that the Commercial Court in Riyadh issued a ruling on opening the financial reorganization procedures for the company, according to a statement to Tadawul.

In addition, the court's ruling included appointing Osama Al-Sudais as office trustee to carry out the financial reorganization procedures.

The time limit granted to the company by the court to prepare the proposal is 150 days from the date of opening the procedures, the statement said, adding that the court verdict will be received tomorrow, Dec. 8.

In October, Tihama announced submitting a request for financial reorganization with the competent court, to preserve shareholder rights and ensure company sustainability, according to data compiled by Argaam.

The registration of the financial reorganization application exempts the company from applying the provisions of the Companies Law regarding accumulated losses in case of reaching 50% or more of capital.

The application was registered before the expiry of the period specified in Article 150 of the Companies Law.

The firm's accumulated losses reached SAR 34.2 million, or 68.4% of capital, for H1 2022.