GARMCO reaches agreement for continuity
TDT | Manama
The Daily Tribune – www.newsofbahrain.com
Gulf Aluminium Rolling Mill (GARMCO) announced that it has reached a final agreement with the group of Creditors to ensure continuity of the Company.
The Company had faced financial distress due to global economic conditions, and after the issuance of Law No. 22 of the year 2018 Promulgating the Reorganization and Bankruptcy Law, the Company’s General Assembly decided to benefit from the provisions of the law by filing a reorganization case.
Consequently, the Company became one of the first companies to file for reorganization under the new reorganization and bankruptcy law.
The purpose of the law is for financially distressed companies to attempt to reorganize their financial affairs and avoid liquidation whenever possible, as it includes provisions that facilitate the restructuring of companies.
The reorganization case has concluded with a decision issued by the court whereby it ratified the reorganization plan and announced the enforceability of the plan.