Al Madina for Finance and Investment Co. posted a 26% drop in assets and widened its FY13 losses, and accordingly, it was uncertain of its ability to continue as a going concern, according to a company's statement.

In a statement to the Dubai bourse, the firm cited unpaid contracts, lawsuits with creditors and the confiscation of "the company's pledged assets for wakala payables", according to Arabian Business.

Al Madina has applied to a Kuwaiti court for protection from creditors and there is "a material uncertainty that may cast significant doubt about the company's ability to continue as a going concern", it said.

The company posted a net loss of KD8.2 million ($29.2 million) for the 2013 financial year, against a KD3.3 million loss a year earlier, while total assets fell by more than a quarter to KD106.1 million.