MMG announces further losses

A $20.9mn loss in September brings total losses to 221% of capital

NEWS, Business, Contractor, Losses, MMG, Saudi Arabia

Saudi contractor Mohammad Al Mojil Group announced a further loss of $20.9mn (SR78.4mn) in the month of September, bringing its total losses in the year-to-date to $115.5mn.

The Dammam-based contractor, which last week unveiled a proposal to write off the value of around 90% of its share capital with a view to reducing its overall liabilities, has said that its accumulated liabilities currently stand at $737.8mn (SR2.78bn), or 221.5% of its capital.

The company, which has been through three chief executives in as many years, recently sold off its marine services division in a $53.3mn move in a bid to reduce its debt.

It recently said that it remained in talks with lenders with a view to renegotiating some of its debt, which could lead to the "possible transfer of certain rights and/or benefits to lenders".

If agreement is reached, it could also launch a new rights issue with a view to raising more cash.

 

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