Monday, Jan 21, 2013
(This article was first published on Sunday.)
RIYADH (Zawya Dow Jones)--Troubled Saudi construction firm Mohammed al Mojil Group (1310.SA), or MMG, said Sunday it would launch litigation against Bin Laden Group and two other firms to collect what al Mojil alleged was more than 400 million Saudi riyals ($106 million) in unpaid receivables.
Besides Bin Laden Group, the legal action also would target petroleum-engineering firms Petrofac Arabia and SK Engineering and Construction, al Mojil said in a statement on the website of the Saudi stock exchange.
"There will be other steps later against other companies," the statement said. It gave no details.
An official at the Bin Laden Group office in Jeddah said Sunday morning no one was available to comment. Phone calls to Petrofac Arabia and SK Engineering and Construction at their offices in Khobar were not answered.
Al Mojil in 2012 began restructuring in the face of heavy debt and losses. Shareholders in November declined to allow the company's liquidation. Al Mojil has said it will pursue asset sales and debt reduction.
Saudi Arabia's market regulators suspended trading of the company's shares in July.
Write to Ellen Knickmeyer at ellen.knickmeyer@dowjones.com
Copyright (c) 2013 Dow Jones & Co.
(END) Dow Jones Newswires
21-01-13 0341GMT
