In reference to the Bankruptcy Law issued by Royal Decree number (M\50) dated 28/05/1439 H and its Implementing Regulation issued by Council of Ministers' Resolution Number (622) dated 24/12/1439 H, and in continuance to the CMA's role in regulating and developing the capital market, as well as regulating and monitoring full disclosure of information relating to securities and the issuers of such while maintaining a stable and robust environment, and in accordance with the Capital Market Law issued by Royal Decree Number (M\30) dated 02/06/1424 H and its Implementing Regulations, the CMA's board issued its resolution dated 27/7/1440H, corresponding to 3/4/2019G of the following:
a. An issuer whose securities are listed on the Exchange must disclose to the Authority and the public, immediately and without delay in a separate announcement, the following developments – with a statement of their impact on the issuer's financial position or the general course of its business:
- Upon passing a resolution by the person of authority in the issuer to submit an application to the court for commencing a financial restructuring procedure for the issuer in accordance with the Bankruptcy Law.
- Upon receiving a notification from the court regarding others registering an application with the court for commencing a financial restructuring procedure for the issuer in accordance with the Bankruptcy law.
Upon registering an application with the court for commencing a financial restructuring procedure for the issuer in accordance with the Bankruptcy Law, with clarification of the subsequent steps and durations therefor.
- Upon the issuance of the court's decision rejecting the application of commencing a financial restructuring procedure for the issuer in accordance with the Bankruptcy Law, with a statement of the reasons for such rejection.
- Upon the issuance of the court's decision ordering the commencement of the financial restructuring procedure for the issuer in accordance with the Bankruptcy Law, with clarification of the subsequent steps and durations therefor.
- Upon the issuance of the court's decision terminating the financial restructuring procedure in accordance with the Bankruptcy Law. Or terminating it and commencing the liquidation procedure or the administrative liquidation procedure for the issuer in accordance with the Bankruptcy Law.
b. The issuer shall commit to disclose any material developments included in the reports it provides during the commenced financial restructuring procedure in accordance with the Bankruptcy Law, unless the officeholder, the bankruptcy committee or the competent authority decides that such developments are confidential according to paragraph (1) of Article 10 of the Implementing Regulation of the Bankruptcy Law issued by Council of Ministers' resolution Number (622) dated 24/12/1439 H.
c. Trading of listed securities of an issuer with accumulated loss reaching 50% or more of its paid- in capital shall be suspended upon registering the application for the commencement of a financial restructuring procedure with the court in accordance with the Bankruptcy Law.
d. The suspension of trading pursuant to paragraph (c) of this resolution shall be lifted upon the issuance of the court's decision ordering the commencement of the financial restructuring procedure for the issuer in accordance with the Bankruptcy Law, unless the issuer is banned from carrying out its activities by the relevant competent authority.
e. The suspension of trading pursuant to paragraph (c) of this resolution shall continue if the court issues its decision rejecting the commencement of the financial restructuring procedure for the issuer in accordance with the Bankruptcy Law, until the expiry of the period specified in Article (150) of the Companies Law, or, prior to that, upon reduction of accumulated losses of the issuer to become below 50% of its paid- in capital.
f. The issuer's securities will be delisted upon the issuance of the court decision terminating the financial restructuring procedure and commencing the liquidation or administrative liquidation procedure for the issuer in accordance with the Bankruptcy Law.