Saudi Arabia has been in headlines from the past few years, especially after the announcement of Saudi Vision 2030. The rapid changes in the country have attracted everyone. From its ultra-conservative image to modern nature, from the ban on the freedom of gathering to huge concerts and international events, the country has changed a lot. Not only this, last year, the country was in the headlines after announcing the shares of the Saudi stock exchange market open for the general public.
We have discussed in detail what were the aims, objectives, pros, and cons of opening the market shares. Aramco had been the headline of the economic forum. Similarly, the Saudi Oger Company has been a significant source of interest to the public. Not only in terms of shares for the locals, but the primary hub for Saudi expats working in the company has highlighted its importance.
But recent news shocks everyone when the commercial courts declared them bankrupt. What made them bankrupt? Why are they selling their shares? When will the auction take place? Read the exclusive insight about the recent happening in the article below.
Saudi Commercial Court declared Oger Company bankrupt
According to the authentic sources, The Riyadh Commercial Court has approved the auction of Saudi Oger Company property after declaring them a complete bankrupt. A special cell has been created to mediate the process of giving the owed amount from the bankrupt company to the people.
Why was Saudi Oger Company declared bankrupt?
A lawsuit was filed against the Saudi Oger Company in a commercial court by the local bank. The case said that the bank was unable to follow the rules of the company and owed somewhat 21 billion riyals, whereas the company has 83 million riyals in the bank. The amount owed as debt is huge than the amount in the bank. Therefore, the bank requested the court to allow the company to sell the property to pay its dues so that it could pay the money to the lenders.
Why were several deals quoted against the Oger company?
According to the news,
Several deals were quoted by the private bank in connection with the Saudi company to obtain details of the company’s property and arrange the auction.
Did the company present its details of property at the court?
After being notified several times by the relevant agencies and the related companies, the details of the property were presented by the lending company. According to those details, the company has 62 properties worth around 11 billion riyals, while the company also owns shares of several companies.
The necessary arrangements for the auction of Oger company properties
As per the orders of the court, the company ensured the auction of the movable and immovable property and payment of the loans. Further, a committee has been developed by the court whose members have been instructed to follow the bankruptcy proceedings as soon as possible. According to the instructions,
All the provisions of the Bankruptcy Law should be enforced against the management of the company, and its travel ban should be banned.
The consulate exceptional help for the Pakistani victims
Since several Pakistanis were working in Saudi Oger Company, thus they were affected in hundreds due to the closure of the company. However, the Consulate ensured their help by developing a special relief cell to make necessary arrangements to send Pakistani victims back to their country, along with recovering their dues and timely supply of food and other necessities.
Indeed, it was a big blow for the company and its workers. But with the timely order from the court, we believe that the lenders can get their required amount owed as debts by the company as soon as possible. Share your thoughts in the comment section below.