The first and one of the largest downstream aluminium facilities in the Middle East for rolling, cutting and fabricating aluminium, the Bahrain-based Gulf Aluminium Rolling Mill B.S.C (“GARMCO”) notified that it has reached a final agreement with the group of Creditors to ensure continuity of the Company’s functionalization.
Garmco had encountered financial distress due to global economic conditions and following the issuance of Law No. 22 of the year 2018 ‘Promulgating the Reorganization and Bankruptcy Law’, the Company’s General Assembly resolute to benefit from the provisions of the law by filing a reorganization case.
Accordingly, the company became one of the first companies to file for reorganization under the new reorganization and bankruptcy law. However, the purpose of the law is for financially distressed companies to attempt to reorganize their financial affairs and avoid liquidation whenever possible, as it incorporates provisions that facilitate the restructuring of companies. The reorganization case has accomplished with a decision issued by the court whereby it endorsed the reorganization plan and announced the enforceability of the plan.
Arif Rahimi, the Chairman of Garmco said on this situation, “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.”
“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 continuing working with the creditors hand in hand”, he added.
“The Company, through the reorganisation, is looking forward to competing 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”.
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