Collapsed Saudi Oger's debts total $10.67 billion

The firm's collapse in 2017 left thousands of workers unpaid
Collapsed Saudi Oger's debts total $10.67 billion
A former employee looks through a closed gate of Oger's headquarter in the Saudi capital Riyadh.
By Bernd Debusmann Jr
Thu 23 May 2019 09:48 AM

A Riyadh court has estimated the accumulated debts of liquidated construction firm Saudi Oger at over SAR 40 billion ($10.67 billion), according to media reports.

The amount includes SAR 22 billion ($5.87 billion) owed to suppliers as well as SAR 2.6 billion ($693.2 million) in delayed salaries and allowances, end-of-service benefits and other entitlements owed to former employees, according to Saudi Gazette.

Court sources cited by the newspaper said that the amount of money remaining in the court’s custody amounted to SAR 83.7 million, while the company’s bank account had a balance of SAR 171,000.

The sources added that over 6,000 people had approached the court seeking help in getting their dues from the company.

The firm, linked to Lebanese Prime Minister Saad Hariri, collapsed amid allegations of mismanagement and corruption in 2017, leaving thousands of workers unpaid.

Because creditors could not agree to a settlement, a Saudi court appointed a liquidator to wind up the company’s operations.

The company is also believed to owe the government SAR 38 billion.

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