Addendum Announcement from Abdullah A. M. Al-Khodari Sons Co. in regards to The Commercial Court of Dammam accepted the proposal for financial restructuring and set a date for voting
|Introduction||Below are the highlights of the Company’s financial restructuring proposal:|
|Date of Posting the Previous Announcement of Development on Tadawul's Website||2021-07-06 Corresponding to 1442-11-26|
|URL of the Previous Announcement||Click Here|
|Change on the Development||Increase the Company's capital by converting the debts (SAR1,825,857,025) of all the categories of creditors into shares at a price of SAR10 per share. The new capital after conversion of debt will be SAR 2,383,669,525. Requiring all creditors except employees to contribute SAR 3 for each share issued to them in accordance with point 1. This contribution will generate SAR 512 million in cash that will be recorded as part of shareholder’s equity in the Company’s books. The increase in Capital from the conversion of debts and the cash contribution will be utilized to absorb the accumulated losses. The Company’s capital will be reduced by 92.11% to be SAR 188 million for the purpose of absorbing the accumulated losses and reducing it to less than 50% of capital as required by Companies Regulations.|
|Financial Impact on the change||Currently, it is difficult to determine the financial impact and developments resulted from the procedures of the financial restructure. Such impact shall be disclosed, if any, on time.|
|Additional Information||The Board of Directors did not find any plan (financial reorganization proposal) available with the Company at the time of appointment of the Board, and therefore, the board was keen to make a plan (financial reorganization proposal) that takes into account the worst future possibilities to protect the company from any default that may arise and cause the plan/proposal to fail. |
There are no other solutions with the Board of Directors other than what has been provided, and it will be the last chance for the creditors and shareholders to protect the Company.
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