The former chairman of Saudi construction firm Mohammad al-Mojil Group (MMG) has proposed a plan to save the financially troubled company, including recapitalisation and a mechanism to recover money it says it is owed by contractors.
Adel al-Mojil resigned as chairman in June, along with other members of the board, but still has shares in the company. His father, who founded the company 60 years ago, still holds a 50-percent stake.
“I present here elements of a practical solution to the company’s problem that will return part of the shareholder value,” he told a rare news conference in Zurich.
He said the company had suffered losses of 1.5 billion Saudi riyals ($400 million) after its 2008 public listing as a result of bills that had not been paid by contractors while working on projects for state oil giant Saudi Aramco. More info
by Reuters www.arabianbusiness.com