Saudi Oger's debt valued at over US$ 10.7 bn
Posted on 23rd May 2019
According to *Constructionweekonline news report, a Riyadh court has calculated the accumulated debts of liquidated contractor Saudi Oger – hit in part by the 2015-16 slowdown in Saudi Arabia’s construction sector – at more than $10.7bn (SAR40bn), local media reported.
This amount, according to Saudi Gazette, includes $5.9bn (SAR22bn) owed to suppliers and $693.2m (SAR2.6bn) in employee-related outstanding dues, such as delayed salaries and allowances, end-of-service awards, and other entitlements.
Court sources told the local newspaper that $22.3m (SAR83.76m) was in the court’s custody, with the balance of the company's bank account standing at $45,590 (SAR171,000).
According to the report, more than 6,000 people have approached the court demanding it to intervene and get their dues paid, in addition to a number of banks and private companies.
The news comes after news broke in August 2016 that the Riyadh-based construction company was expected to declare bankruptcy to get over its acute finical problems.
The company failed to pay financial dues to medical insurance companies, resulting in the stopping of insurance to its employees, a Saudi Oger source told the Saudi Gazette at the time.
Oger was largely seen as victim of a slowdown in the Saudi construction sector due to low oil prices and state spending cuts, with wage payments to thousands of its workers having been delayed, according to Saudi media.Back to all Construction News
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