Gulf Aluminium Rolling Mill B.S.C (“GARMCO”) announced that it has reached a final agreement with the group of Creditors to ensure continuity of the Company.
The Company had faced financial distress due to global economic conditions, and after the issuance of Law No. 22 of the year 2018 Promulgating the Reorganization and Bankruptcy Law, the Company’s General Assembly decided to benefit from the provisions of the law by filing a reorganization case. Consequently, the Company became one of the first companies to file for reorganization under the new reorganization and bankruptcy law. The purpose of the law is for financially distressed companies to attempt to reorganize their financial affairs and avoid liquidation whenever possible, as it includes provisions that facilitate the restructuring of companies. The reorganization case has concluded with a decision issued by the court whereby it ratified the reorganization plan and announced the enforceability of the plan.
On this occasion, GARMCO’s Chairman, Mr. Arif Rahimi said, “We were able to reach an agreement with the Creditors through putting together a plan that takes into consideration the interests of both the Company and the Creditors. The reorganization plan has been unanimously approved by all creditors and ratified by the court. It includes several essential provisions that would lead to rescuing the Company from financial distress, the most important of which was rescheduling the debts and converting part of it into shares for the Creditors of the Company. Such decision will lead to the improvement of the Company’s financial position, enabling it to continue its production process and achieve more sales and profits during the upcoming period.”
Mr. Rahimi added, “the Company has received the necessary support and assistance from several parties during the distress it underwent in the past two years, and I would like to take this opportunity to extend my sincere gratitude to all the parties that supported the Company, particularly Bahrain Mumtalakat Holding Co., Saudi Basic Industries Corporation (SABIC) and the Kuwait Investment Authority, in addition to all the other shareholders, for supporting the Company. In this instance we would like to extend our appreciation and thanks to the creditors who have cooperated with the Company during the deliberation period of the case and the putting together the final reorganization plan. The Company looks forward to continue working with the creditors hand in hand”.
Mr. Rahimi further added, “the Company, through the reorganisation, is looking forward to compete at a global level. During the past period, we successfully were able to access new markets in various regions of the world and the Bahraini product that’s known for its quality has reached North and South America, along with Europe”.