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FINANCIAL NEWS
Saudi MMG losses hit USD716m in Jan.-Aug.
20 Oct 2014
(MENAFN) Mohammad Al-Mojil Group’s (MMG), the Saudi contractor company, said it has approved a recovery plan, which will utilizes most of the company’s existing capital base to pay off debts and new cash raised through a share issue, Arab News reported.
MMG, which accumulated losses for the January-August period reached USD716.75 million, which is equivalent to 215 percent of its paid-up capital, said that the plan is only the first step in a long recovery process, which will also include finding new investors for the company.
Under the approved plan, MMG will cut its capital from USD333.19 million to USD33.31 million, which will help the company complete all of its projects by the January-March period of 2015 allowing the business to return to profitability in subsequent quarters as it takes on new business opportunities.
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