DAMMAM — Mohammad Al-Mojil Group (MMG) signed an agreement with GIB Capital (the investment banking arm of Gulf international Bank GIB in Saudi Arabia) today to act as a financial adviser in the financial restructuring program with all the debt holders, creditors and stakeholders. Commenting on the appointment, MMG CEO Stewart Macphail said: "The business is now in a position to commence work on the financial restructuring of the company's balance sheet. With the advice of a trusted and experienced institution like GIB, we hope to succeed in establishing how MMG can reduce and potentially eliminate the current negative net equity of the company by agreement with its lenders, suppliers and shareholders on a restructuring program." The work to operationally restructure the business remains ongoing but MMG has now reached a level of stability that both the Board of Directors and management believe would allow the company to improve its future financial performance and embark on a process to resolve its negative equity," Macphail added. According to published financial statements, MMG has reported substantial losses in the last two years due mainly to projects cost overruns and provisions to reflect uncertainties surrounding the completion of some of its projects. — SG
