MedGulf says Bahrain affiliate’s debt cut to SAR 123 mln

The Mediterranean Gulf Insurance and Reinsurance Co. (MedGulf) said that the pile of debt of SAR 163.38 million owed by its Bahrain affiliate, MedGulf Bahrain, has been reduced to SAR 122.8 million through settling an existing debt of SAR 40.59 million due by the Saudi insurer to an affiliate of MedGulf Bahrain.

MedGulf also approved a request by majority shareholders of MedGulf Bahrain to extend the deadline to present to submit a bank guarantee for SAR 122.8 million, the company said in a bourse statement.

The deadline was extended until September 28, 2017 when an unconditional and irrefutable bank guarantee covering the full amount would be presented.

 The Saudi-listed insurer added that it will be taking all necessary legal actions if MedGulf Bahrain fails to pay the full debt amount by the new deadline date.

Last month, MedGulf has extended the deadline of the debt to September 20, 2017 to allow majority shareholders of MedGulf Bahrain to submit an unconditional and irrefutable bank guarantee for SAR 163.4 million, Argaam reported.

Earlier, the company had received a letter from Saudi Arabian Monetary Authority (SAMA) warning of legal procedures against the insurer if it did not rectify irregularities in its accounting or if it delayed disclosing financial statements.