Saudi’s MMG on the brink
Contractor’s shareholders to meet in emergency general meeting in November as losses pile up
Saudi contractor Mohammed al-Mojil Group (MMG) has called for an emergency general meeting in November to discuss the future of the company, after external auditors found its liabilities to exceed its assets.
MMG reported second quarter net losses of $407.8m. while net liabilities exceeded its assets by $362.5m, the company said. It attributed its losses to difficulties in large projects it was working on.
“These matters require the board to call an extraordinary meeting of its general assembly to consider and decide on whether the company should continue or dissolve,” MMG said in a statement on the Saudi bourse website.
Last May, the construction firm fired its chief executive and appointed PricewaterhouseCoopers to advise it on turning around its financial performance.
In July the Saudi stock market suspended trading of its shares for failing to announce its second quarter results on time.
