Wafa Insurance says financial reorganization plan cannot be implemented

Logo of Wafa Insurance

Saudi Indian Company for Cooperative Insurance (Wafa Insurance) said that the bankruptcy trustee appointed by the Commercial Court in Riyadh, Waleed bin Muhammad Subhi, submitted a request to the court to terminate the procedures for the financial reorganization of the company.

The company said in a bourse filing that the step came because the plan could not be implemented.

According to data compiled by Argaam, Wafa Insurance announced last June that it was unable to pay the third installment to creditors at the time scheduled in the financial reorganization plan.

On Nov. 9, 2020, the company received the final court judgment approving the financial reorganization proposal by the Ninth Commercial Circuit of the Commercial Court in Riyadh, and began paying the first installment of the creditors’ payments.

Wafa Insurance also announced the start of paying the second installment of creditors' payments on March 27, 2021.