KSA government ends rescue talks with Saudi Oger
The Saudi Arabian government has called off rescue talks with troubled contractor Saudi Oger, according to newswire, Reuters
The Saudi Arabian government has called off rescue talks with Saudi Oger, an anonymous source has told Reuters.
The collapse of the talks leaves the troubled contractor facing a multibillion-dollar debt restructuring process, according to the report.
A second KSA-based source told Reuters that, in addition to $4bn (SAR15bn) of bank loans, Saudi Oger owes approximately $670m (SAR2.5bn) to workers, and billions of riyals to contractors and suppliers.
The contractor’s pay backlog is affecting thousands of construction workers from Southeast Asia, the newswire added.
The reason behind the KSA government’s decision to abandon rescue talks remains unclear.
Neither Saudi Oger nor the kingdom’s finance ministry responded to requests for comment, according to Reuters.