A final warning from the “Industrial Development” to repay the loan to “Al-Rif Sugar Refining”

Jazan Development and Investment Company (Jazadco) announced that it had received an official final warning from the Saudi Industrial Development Fund, today, regarding its commitment to guarantee under the loan agreement for Al-Reef Sugar Refining Company, by paying the value of the loan amounting to 100,800,000 riyals within a maximum period of 15 working days from the date of notification, according to what stipulated in Article (14) of the State Revenue Law, based on the loan amounting to 672,000,000 riyals, noting that the percentage of JAZADCO Of the loan 15%.
Jazadco said in a statement on the Saudi Tadawul: Work is underway with the management of the Al-Reef Sugar Refining Company to complete the previously announced procedures, which are:
1. Request for a fair evaluation: The Board of Directors of Al-Reef Sugar Refining Company was officially requested to conduct an independent fair evaluation of the company’s assets. In addition, Jazadco supports efforts to identify potential buyers of the company’s assets to mitigate the financial impact.
2. Entering into negotiations: A meeting was held with the Saudi Industrial Development Fund and the current situation and clarification were fully explained, with the aim of searching for a fair and acceptable payment plan for both parties to fulfill the obligations and guarantees. Another meeting was scheduled with the Fund to review the developments.
Evaluating the financial impact: Jazadco is working to evaluate the financial impact of this commitment, and the impact of this will be disclosed on the financial statements immediately after applying the above-mentioned procedures, as the financial impact is related to the asset evaluation, which is currently being worked on.
She noted that any developments in this regard would be announced in a timely manner.