Dubai's GGICO to restructure finances after losses hit over 90% of capital | ZAWYA MENA Edition
The board of directors of Dubai-listed Gulf General Investment Company (GGICO) has agreed to proceed with the plan to restructure the company’s finances, following losses that hit more than 90 percent of the capital.
The move will include the appointment of a financial advisor that will review the firm’s assets, liabilities and cash flows, so that a financial recovery plan can be drawn up, a bourse filing to the Dubai Financial Market (DFM) said on Wednesday.
“The financial advisor will be responsible for studying the economic and financial situation of the company,” the statement said.
The company, which has investments in real estate, retail, hospitality, manufacturing and financial services sectors, posted accumulated losses amounting to 1.687 billion dirhams ($459 million) during the first three months of the year.
The losses incurred were a result of impairment of assets due to the “challenging market situation” and represent more than 94 percent of the share capital, GGICO had said last May.
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