Riyadh – Mubasher: The Commercial Court of Dammam approved for Abdullah Abdul Mohsin Al Khodari Sons Company (Al Khodari) to covert SAR 1.25 billion of creditors’ debts into shares at a value of SAR 10 each.

The capital will therefore stand at SAR 2.38 billion after the conversion, according to a bourse filing on Wednesday.

All creditors, excluding employees, will contribute SAR 3 for every share issued to them, Al Khodari added. This contribution will generate SAR 512 million in cash.

The capital raise from debt conversion in addition to cash contribution will be used to offset accumulated losses.

The listed firm further noted that the capital will be reduced by 92.11% to SAR 188 million in a bid to offset the accumulated losses to be less than 50% of the capital.