Mohammed Al Mojil Group (MMG) welcomes the new CMA regulations (procedures and instructions for listed companies with accumulated losses of 50 percent or more of share capital) that have been recently circulated by the Capital Market Authority (CMA) as they provide a roadmap for distressed listed companies to correct their financial position and have their stocks reinstated on the Saudi Stock Market (Tadawul).

MMG CEO Stewart Macphail said: “MMG welcomes the new regulations as they clearly set out what we need to achieve to allow the company be re-traded on Tadawul.

MMG CEO added: “Over the past three quarters MMG has stabilized its financial performance with the support of its staff, suppliers, customers and lenders. The company will comply with the newly published requirements and seek to have its suspension removed as soon as possible. MMG published a recovery plan last year, and has issued its quarterly results promptly. We anticipate continued improvement of our financial results through 2014 onward.”

MMG's recovery plan has been ongoing since July 2012, and progress has been shown through a reduction in the level of reported losses. Discussions remain ongoing with lenders to financially restructure the balance sheet, eliminate negative equity, collect overdue receivables and finalize the remaining legacy projects by mid-2014.