Tihama board not to appeal ruling rejecting FRP

Logo of Tihama Advertising and Public Relations Co.

The board of Tihama Advertising and Public Relations Co. canceled a previous decision to appeal the preliminary ruling issued by the Commercial Court in Riyadh, which rejected the company’s proposal for a financial restructuring procedure (FRP) on Jan. 16.

In a statement to Tadawul, Tihama said that the decision was taken after comprehensive legal and financial studies and after seeking the opinions of FRP specialists.  

The board deemed that the appeal will not be in favor of the company. Tihama will accept the preliminary ruling issued by the Commercial Court in Riyadh to avoid any risks and any other legal repercussions.

In addition, the company’s ruling on terminating the FRP means that Tihama will exit the path of bankruptcy and return to its normal position, the statement ended. 

Tihama earlier said that its board decided to appeal the court’s preliminary ruling on the FRP proposal, Argaam reported.

Riyadh’s Commercial Court rejected and ended Tihama’s proposal for FRP. The court had accepted the proposal in November 2023.

In December 2023, Tihama’s shareholders approved the financial reorganization proposal under the Saudi Bankruptcy Law.