Baha Investment to request a capital increase as part of restructuring plan

Baha Investment and Development Co plans to request to double its capital to SAR 300 million through rights issue to pay off debts and buy low-risk projects that generate fixed income as part of the troubled company’s plan to restructure, Baha said in a statement to the Saudi bourse, Tadawul.

If the extraordinary general assembly decides to keep the company, the plan may also include leasing its patent leather factory and using the rights issue revenue to pay off debts to the Zakat authority and banks, it added.

Auditors have recently recommended to dissolve the company after accumulated losses had reached SAR 182.5 million, or more than 100 percent of its capital.

The company, which runs industrial, agricultural and tourism projects, has reported SAR 1.1 million losses in the first quarter.

The Saudi Capital Market Authority suspended trading in al-Baha shares on April 6, 2013.