Tihama says Riyadh court accepts financial reorganization plan

Logo of Tihama Advertising and Public Relations Co.

Tihama Advertising and Public Relations Co. said that the Commercial Court in Riyadh accepted today, Nov. 22, the company's proposal to conduct financial reorganization procedures, according to a statement to Tadawul.  

The court also set Dec. 14, 2023, from 12:00 pm until 3:00 pm. as the time to vote on the proposal via Zoom. 

The company announced, in October 2022, submitting 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 case of reaching 50% or more of capital. 

Tihama's accumulated losses fell to SAR 119.82 million as of June 30, 2023, representing 30% of its SAR 400 million capital. 

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