Al Khodari's shareholders approve capital restructuring, struggling company's shares surge | ZAWYA MENA Edition

Al Khodari's shareholders approve capital restructuring, struggling company's shares surge | ZAWYA MENA Edition:

Shareholders of Saudi Arabia’s Abdullah Abdul Mohsin Al Khodari Sons Company (Al Khodari) approved a capital restructuring, which could help the company to move away from the harsh times it has gone through the last couple of years.

Al Khodari announced to the exchange on Thursday that its shareholders had approved a capital restructuring at an emergency general meeting held to deal with the company's losses. In a note to the exchange last month, the company said its accumulated losses had reached over 1.1 billion Saudi riyals ($293.3 million), equivalent to 198.52 percent of its share capital.

Shareholders voted to allow the company to continue trading and to approva a restructuring that will involve a capital reduction to reduce losses and a capital increase, with a view to bringing losses back below half of its paid-up capital.