MUSCAT: Publicly traded company Sohar Power Company SAOG has announced the filing of an appeal with the Seeb Appeals Court against the rejection of its bankruptcy application by the primary court on November 13, 2023.
In a disclosure to the Muscat Stock Exchange (MSX) on December 4, 2023, Sohar Power's Chief Executive Officer, Sreenath Hebbar, said the company's management is also in the process of issuing a tender and inviting bids for the sale of the power and desalination plant either as a complete plant or in separate packages.
This move is seen as a proactive measure by Sohar Power to ensure that the company's assets are valued and sold in a fair and transparent manner, in the event that its bankruptcy appeal is unsuccessful.
Sohar Power has been facing financial challenges since the expiration of its Power & Water Purchase Agreement (PWPA) with Nama Power & Water on May 15, 2022. The company has been unable to secure a new contract with Nama, and efforts to extend the company's operating life have been unsuccessful.
The company's outstanding debts amount to RO 39 million, while its shareholder equity reflects a negative value of RO 30.8 million.
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