Riyadh – Mubasher: Mohammad Al Mojil Group Co. said it received on Sunday, 29 May 2016 a ruling from the Court of Cassation in Dubai which overturned a ruling by the Court of Appeal that was issued in the company’s favour on 15 July 2015.
The Appeals Court bound MML Mideast Limited to pay Al Mojil a sum of $63 million (SAR 236 million). This ruling will not have a financial impact on the company’s financial statement, Al Mojil said in a filing to the Saudi Stock Exchange (Tadawul) on Monday.
The Saudi-based company entered into an agreement in 2008 with Dubai’s MML Mideast to provide equipment for Al Mojil’s Manifa oil refinery. The UAE company failed to meet the terms of the contract, which resulted in Al Mojil incurring losses.
Al Mojil’s extraordinary general meeting (EGM) last week decided not to liquidate the company and to continue with its operations.
The Saudi-listed company posted a net loss of SAR 12.7 million in April, bringing total accumulated losses to SAR 3.59 billion or 287% of capital.
