Court ends Al-Khodari's financial restructuring, begins liquidation

Logo of Abdullah A. M. Al-Khodari Sons Co.

Abdullah A. M. Al-Khodari Sons Co. announced that it received today, Aug. 11, the decision issued by the First Department of Dammam Commercial Court to end the company's financial restructuring procedure and start its liquidation, according to a bourse filing.

The court also ordered the appointment of Bader Hatem Al-Tamimi as liquidator.

The company indicated that all related parties have the right to object before the Court of Appeal to the above-mentioned decision within 14 days from the date of the judgment, as per Article No. 217 of the Saudi Bankruptcy Law.

Any developments in this regard will be announced in due course.

In a meeting held on Aug. 4, under the supervision of the trustee appointed by the Commercial Court in Dammam, Bader Al-Tamimi, Al-Khodari's creditors rejected the financial reorganization proposal under the Saudi Bankruptcy Law.

Shareholders recently approved the financial restructuring proposal, which included increasing the company’s capital by converting the debts of all categories of creditors into shares of SAR 10 each, bringing the new capital to SAR 2.38 billion.