Al-Khudari converted 1.8 billion riyals of debt into shares

The Abdullah Abdul Mohsen Al-Khodari Sons Company intends to increase the company's capital by converting the debts of all classes of creditors, amounting to about 1.826 billion riyals, to shares at a value of 10 riyals per share, to become The new capital is about 2.384 billion riyals, in implementation of the proposal to conduct a financial reorganization, which was accepted by the Dammam Commercial Court.

According to Arabiya Net, the company said in a statement that the proposal includes a cash support provided by all creditors except for employees of 3 riyals for each new share. This support will result in an amount of A cash of 512 million riyals, which will be recorded within the equity in the company's accounts.

It clarified that the capital increase will be used through converting debts into shares as well as cash support in amortizing the accumulated loss, and the company's capital will be reduced by 92.11% to reach 188 million riyals, with the aim of extinguishing the company's accumulated losses and reducing them to less than 50% of the capital, according to the requirements of the Companies Law.

Al-Khodari indicated that it is currently impossible to determine the financial impact that may result from proceeding with the financial reorganization procedure and its developments, and this impact, if any, will be disclosed. at the time.

The company stated, that the board of directors did not find the plan of the financial regulation proposal viable at the time of its appointment, and therefore it was keen that the plan of the financial regulation proposal take into account the worst future possibilities. To protect the company from any default that may occur and cause the plan to fail.

And she continued: There are no other solutions for the board of directors other than what was presented, and it will be the last word for creditors and shareholders.