Regions

MMG to chase outstanding amounts due the company

November 2
9:14 AM 2013

Mohammad Al Mojil Group, the Saudi Arabian building contractor, would be chasing SAR1.5 billion or USD400 million in outstanding fees owed the company by its clients. It also believes the amount of money to be recovered would be a 'significant percentage'. The recovery would utilize negotiation, arbitration as well as other legal claims to be done over the next few years.

The contractor based out of Dammam said that it 'continues to take steps to recover money due from customers on completed projects.' These are significant assets that it cannot indicate in its balance sheet. These would be in the amounts worth USD320 million or SAR1.2 billion as well as recover another USD80 million or SAR300 million in disputed final accounting with specific projects.

MMG had announced a third quarter loss worth USD2.1 million, about a 76% decline from the USD9 million lost in the same period in the previous year. From nine months to date, the losses have capped out at USD28.9 million or an 84% increase in the USD180.5 million lost in the first three quarters of 2013. Total losses have reached over USD623 million and its deficit to shareholders now stands at USD290 million.

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