Yesterday morning, the First Circuit of the Commercial Court in Dammam approved a proposal to financially reorganize Azmeel Contracting Company and its subsidiaries and restructure the payment of credit amounts that exceeded seven billion Saudi riyals, after the creditors voted on February 2, 2021 AD with the approval of a majority of them by more than 88% of the creditors’ votes who attended the vote.
This was declared by the bankruptcy trustee of Azmeel Contracting Company and its subsidiaries, Ghassan bin Muhammad Al-Majed and Waleed bin Yousef Al-Khalidi, and the company’s lawyer, Saud bin Ibrahim Al-Hamam.
Lawyer Saud bin Ibrahim Al-Hamam also confirmed that the restructuring of Azmeel Contracting Company is the largest financial reorganization case since the application of the provisions of the system, which succeeded in accepting creditors by voting before the Saudi courts in the contracting sector, and that the role of the bankruptcy system came as a remedy for the defaulter and an appraiser in order to return the defaulter to the labor market again to carry out his activity under the direct supervision of the bankruptcy department and the bankruptcy trustee. It is one of the general regulations whose texts may not be violated or slackened in the implementation of its procedures and decisions, given that the time factor is a crucial pillar in dealing with financial crises before they come to an end.
The bankruptcy trustee added that the bankruptcy system faced great challenges from all parties in implementing its statutory texts, and succeeded in being able to address these major challenges, and this success was achieved with great support from the leadership, the regulator, and the authorities supervising the application of the system.
The CEO of Azmeel Contracting Company, Mr. Ahmed bin Fahd Al-Jabr, noted that the success of the financial reorganization depends mainly on the quality of the proposed proposal and the treatment of the debtor’s file data in terms of the size and number of claims as well as assets and realistic business continuity.
The bankruptcy trustee, Ghassan bin Muhammad Al-Majed and Walid bin Yousef Al-Khalidi, considered that the complementary role in preparing the financial reorganization proposal between their work team and the advisory and administrative team appointed by Azmeel Company enhanced the chances of success in this difficult task.
Lawyer Saud bin Ibrahim Al-Hamam, Chairman of the Board of Directors of Maarefa Law Firm, praised the advanced performance of the judicial authorities in dealing with the file of financial reorganization, which in turn keeps pace with the rapid transformation witnessed by the regulatory environment in the Kingdom in accordance with the Kingdom’s Vision 2030.