KSA’s Mohammad Al Mojil Group to take legal action against debtors
Financially troubled construction firm says it is owed more than $107mn
Saudi Arabia’s Mohammad Al Mojil Group will sue its debtors over the $107mn it claims it is owed.
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Saudi Arabian construction company, Mohammad Al Mojil Group, announced on Sunday that it planned to started legal action to collect dues and claims worth more than $107mn.
The financially troubled construction firm said that it would take legal action against the Saudi unit of Britain’s Petrofac, Saudi Binladin Group and South Korea’s SK Engineering and Construction, an affiliate of SK Holdings.
According to a bourse statement, MMG said that the legal action was coming “after all available solutions and options were exhausted”. The Group is currently restructuring its operations after being hit by heavy losses and accumulated debt.
Although it did not give details about the legal action, the company told Reuters that it was pondering further action against other companies. It declined to elaborate further.
In November 2012, MMG’s shareholders rejected a proposal to liquidate the company, which is heavily involved in oil and gas projects, mainly for the Kingdom’s state oil company, Saudi Aramco.
According to previous reports, the company said its recovery plan included the sale of assets, cutting its bank debt and absorbing accumulated losses.
MMG is currently involved in building part of Aramco’s Wasit gas programme, as well as the Aramco-Sinopec refinery in Yanbu, among others.
