Saudi Arabian Amiantit CEO says business rescue talks under way

Saudi Arabia  -` The CEO of pipe maker Saudi Arabian Amiantit, Dr. Khalil Kurdi has said that the company is in negotiations with the government regarding a possible rescue of the company.

In an EGM, Amiantit’s board recommended to reduce the capital by 69 percent to reach SR99 million ($26.4 million), and then increase it later through rights issue amounting to SR221 million.

Kurdi revealed during an interview with CNBC Arabia on Wednesday that the capital was reduced to halt to the accumulated losses.

The company lacks the necessary liquidity to purchase production components and could not sell assets owned by it until liquidity became available, he added.