Font Size

- Aa +

Wed 23 Apr 2014 01:47 PM

Font Size

- Aa +

Kuwait's Al Madina seeks protection as losses widen

Islamic investment firm says it is uncertain of its ability to continue as going concern

Kuwait's Al Madina seeks protection as losses widen

Kuwaiti firm Al Madina for Finance and Investment Co said on Wednesday it was uncertain of its ability to continue as a going concern, after posting a 26 percent drop in assets and widening its losses for the last financial year.

In a statement to the Dubai bourse, where it is cross-listed, the Islamic investment firm cited unpaid contracts, lawsuits with creditors and the confiscation of "the company's pledged assets for wakala payables".

Al Madina has applied to a Kuwaiti court for protection from creditors and there is "a material uncertainty that may cast significant doubt about the company's ability to continue as a going concern", it said.

The company posted a net loss of KD8.2 million ($29.2 million) for the 2013 financial year, against a KD3.3 million loss a year earlier, while total assets fell by more than a quarter to KD106.1 million.

Set up in 2005, the firm engages in direct investments, fund management and other financial services across the Middle East and North Africa.

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.