ALKOHBAR: Saudi Arabian construction firm Mohammad Al-Mojil Group (MMG) aims to collect between SR700 million and SR900 million ($187 million-$240 million) in claims from other firms as part of a recovery plan to save the 60-year-old company, executives said.

The firm is a victim of the volatility of the Saudi construction industry, showing how cost pressures and stiff competition can threaten companies despite the massive sums being ploughed into building contracts by the government. It over-extended itself during a boom, then was hit by a slump that followed a plunge of oil prices six years ago.

MMG's shares have not traded on the Saudi bourse since July 2012, when they were suspended by the regulator after breaching rules relating to accumulated losses.

The company said in September this year that its accumulated losses as of Aug. 31 stood at SR2.689 billion, equivalent to 215 percent of its paid-up capital. Saudi shares are suspended once losses pass 75 percent of capital.

"By collecting all outstanding due claims and settlements, the anticipated amounts still wouldn’t be enough to cover the balance sheet, but it would be considered enough to allow ourselves to pay obligations to our employees' end-of-service benefits, service overheads, and operating expenses," Terry Smith, MMG's chief operating officer, told Reuters.

The company, which was once a major oil and gas contractor, has worked on huge projects for state oil giant Saudi Aramco.