Al-Khodari appeals court ruling on ending financial restructuring, starting liquidation

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

Abdullah A. M. Al-Khodari Sons Co. announced the submission of an appeal against the judgment issued by the first chamber of the Commercial Court in Dammam, which terminated the company's financial restructuring procedure and commenced liquidation within the statutory dates stipulated in the Bankruptcy Law.

The company announced receiving, on 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. The court also ordered the appointment of Bader Hatem Al-Tamimi as a liquidator.

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