Al Mojil directors quit over firm's poor results
Independent directors express "dissatisfaction" over state of business
Mohammad Al Mojil Group (MMG) has announced that two of its independent board directors have resigned from the firm due to their "dissatisfaction of company financial and operational results and its current status".
Adel Abdulrahman Al-Butairy and Sulaiman Omar Al-Sammahi both left the firm at the end of September, having both tendered their resignations on 18 September.
The company said that it tried to convince both directors to stay to see it through its "critical" situation, but they reconfirmed their intention to leave on Monday (29 September).
Dammam-based MMG has been racking up heavy losses after signing a series of lossmaking contracts in 2010. Since then, it has racked up accumulated losses of $720mn (SR2.7bn), or 215% of its share capital.
In June, the firm appointed its third CEO in lass then three years and announced a rescue deal with Saudi FAS Holding - a company owned by two members of the Al Hokair family. They were due to pump in around $147mn in equity and loans in return for a 40% stake in the business, but withdrew their offer in August shortly after the company revealed further losses.
MMG also announced that Saudi Aramco had given the green light to its plan to sell off its marine services division in a $53.3mn (SR200mn) deal to Jana Marine Services. Saudi Aramco is the company's biggest customer.