SIECO plans financial restructuring after 90% accumulated losses

Saudi Industrial Export Co. (SIECO) has prepared a financial restructuring plan after recording SAR 98.2 million in accumulated losses-- 90.93 percent of capital, the company said in a statement to Tadawul.

In compliance with the Capital Market Authority’s (CMA) regulations governing companies with accumulated losses of 50 percent or more of capital, the company decided the following:
 

- Inviting the extraordinary general assembly to meet in order to approve a capital cut to offset the accumulated losses. Capital reduction details will be announced later.
 

- Working to improve company revenues through export contracts with Saudi companies, as well as those in the Middle East and Africa’s free zones. In addition, SAICO will restructure its investments to ensure better income.
 

- Settle accounts receivables, recover insurance fees, and reduce provisions according to the international accounting standards, as they were one of the main reasons behind the increase of accumulated losses.
 

The statement also said that the mismanagement of the former board of directors and executive management has caused the accumulated losses, as they did not take precautionary measures to preserve the rights of the company and its shareholders.