JAZADCO, Artex receive SIDF letter on RESRECO loan guarantee

04:32 PM (Mecca time) Argaam


Jazan Development and Investment Co. (JAZADCO) and Artex Industrial Investment Co. received today, Nov. 17, official notices from the Saudi Industrial Development Fund (SIDF) concerning their guarantee obligations related to the loan agreement granted to Al Reef Sugar Refining Co. (RESRECO).

 

In two separate statements to Tadawul, the two companies said the loan value stands at SAR 672 million, with JAZADCO guaranteeing 15% of the amount, equivalent to SAR 100.8 million.

 

For more news on listed companies

 

The notice stipulates a 30-business-day settlement period from the date of notification, in line with Article 13 of the State Revenue Law.

 

JAZADCO and Artex will formally request RESERCO board to commission an independent fair valuation of the company’s assets. They also intend to support efforts to identify potential buyers for these assets as part of its strategy to mitigate the financial impact.

 

Additionally, JAZADCO and Artex will enter into negotiations with SIDF to develop a fair and mutually acceptable repayment plan to fulfill its obligations under the loan guarantee.

 

Furthermore, the two companies are currently assessing the financial impact of this obligation. They will disclose any impact on its financial statements immediately after the proposed measures are implemented.

 

JAZADCO and Artex each hold a 15% stake in RESRECO’s capital, data compiled by Argaam showed.

Comments {{getCommentCount()}}

Be the first to comment

loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.