Saudi's MMG Gets $120 Million in Loans to Help during Restructuring

Sunday, Jul 01, 2012

RIYADH (Zawya Dow Jones)--Saudi Arabia's Mohammad al-Mojil Group (1310.SA), or MMG, said Sunday it was taking loans totaling 450 million Saudi riyals ($120 million) from seven Saudi banks to maintain solvency as the company restructures.

The loans will "support the solvency of the company and its operations," MMG, a construction and petrochemicals firm, said in a statement on the website of the Saudi stock exchange.

The loans will come from SABB, NCB, Arab, Samba, Riyad, Al Jazeera and Saudi Fransi banks, the company said.

MMG made a net loss of SAR959.4 million in 2011, compared with a loss of SAR179.48 million in the year before, according to Zawya.com data.

In April, MMG said it was taking a subordinated loan worth 100 million Saudi riyals ($26.7 million) from Al-Mojil Investment Ltd., an affiliate based in Dubai's financial free zone, to support its operations and strengthen the cash flow, the company added.

MMG shares last traded 2.4% higher at SAR12.75.

-By Ellen Knickmeyer, Dow Jones Newswires, +971 55 1093359, ellen.knickmeyer@dowjones.com; Twitter: @ZDJnews

(END) Dow Jones Newswires

01-07-12 0824GMT