Dubai: Al Madina for Finance and Investments said that it did not ‘shock’ its investors by filing for protection.
The company said that it has filed for protection almost six months ago, in November 2013, and that it has discussed the move with its shareholders, explaining to them the reasons that drove the company to file for protection, which is due to the persistence of some debtors.
The company strongly denied that it has filed for protection due to a 26 per cent drop in its assets. Al Madina indicated that the drop in assets is lower than the 29 per cent drop in debt, which was a result of the company settling its loans. The company also pointed out that it has made an additional allocation of 9.5 million Kuwaiti Dinars, which resulted in the loss of 8.2 million Dinars, meaning that Al Madina made an operating profit of 1.3 million Dinars.
