Tihama’s shareholders approve financial reorganization proposal

Logo of Tihama Advertising and Public Relations Co. 

Tihama Advertising and Public Relations Co.’s shareholders approved a proposal for financial reorganization under the Saudi Bankruptcy Law. 

The decision was made during a voting meeting held on Dec. 18 at 6:00 p.m. via modern technology, according to a statement to Tadawul.

Tihama reported favorable voting meeting attendance results, with attendees owning 13.29 million shares, accounting for 33.23% of the total. Approving shareholders own 13.22 million shares, accounting for 99.4% of the total, while non-approving shareholders own 79,300 shares, accounting for 0.6% of the total, the statement added.

In November, Tihama announced that the ninth circuit at the Commercial Court in Riyadh accepted the company's proposal to conduct financial reorganization procedures, according to data available on Argaam.

The company submitted in October 2022 a request for financial reorganization with the competent court to preserve shareholder rights and ensure company sustainability.

The registration of the financial reorganization application exempts the company from applying the provisions of the Companies Law regarding accumulated losses in cases where it reaches 50% or more of its capital.

The request for financial reorganization was submitted ahead of the timeframe specified in Article 150 of the Companies Law.

As of the first half ending Sept. 30, 2023, the company reported accumulated losses of approximately SAR 127.5 million, representing 32% of the company's capital, which stands at SAR 400 million.

In April 2023, Tihama finalized the increase in capital from SAR 50 million to SAR 400 million by offering 35 million priority rights at SAR 10 each, totaling SAR 350 million.