One of Al Jouf Cement’s factories
Al Jouf Cement Co. received notice from the bankruptcy trustee of Eastern Industrial Co., indicating the approval to substantiate a debt claim of SAR 50.66 million owed to Al-Jouf Cement by Eastern Industrial.
In a statement to Tadawul, Al Jouf Cement said the debt amount was provided as a guarantee for loans taken by Eastern Industrial from Bank AlJazira and the Saudi Industrial Development Fund (SIDF).
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Holding a 12% stake in Eastern Industrial, the cement producer anticipates a positive financial impact upon the collection of this debt following the liquidation procedures.
Any developments on this matter will be announced in due course.
In a separate statement, Al Jouf Cement announced the payment of all installments for a long-term loan from Bank AlJazira, totaling SAR 41.66 million. This loan was secured against Al Jouf Cement’s stake in Eastern Industrial, representing 12% of its capital, and included all associated monitoring and supervision costs.
This repayment is expected to enhance Al Jouf Cement’s financial solvency and strengthen its financial position, thereby reducing financing costs.
It will also positively impact the company’s financial results starting from the second half of 2024, the statement added.
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