Wafa Insurance appeals court ruling on ending financial reorganization, opening liquidation process

Logo of Saudi Indian Company for Cooperative Insurance

The Saudi Indian Company for Cooperative Insurance (Wafa Insurance) announced that some objections were submitted on Dec. 28, including an objection from the Chairman on behalf of the board, to appeal Riyadh Commercial Court's ruling dated Dec. 15 on terminating the financial reorganization procedure and opening the liquidation procedure, according to a bourse statement.

Under the ruling, Waleed Sobahi was appointed as a trustee, as per the duties and powers of the trustee stipulated in the Saudi Bankruptcy Law and its Executive Regulations.

Any relevant developments will be announced in due course, the company said.

Earlier this month, the insurer announced the issuance of Riyadh Commercial Court’s decision, ending the company’s financial reorganization procedure and opening the liquidation process, according to data available with Argaam.

The company indicated that anyone with an interest may object before the Court of Appeal to the above-mentioned court’s decision within a period of 14 days starting from the date of issuing the decision.

Chairman Majid Al-Suwaigh said the only solution for the company is that an investor should submit a bid to the trustee to invest in the insurance sector within 14 days so this bid may be referred to the competent authorities.

He added that this will be the board's winning card for appeal.