Backed by its shareholders and board of directors led by Mumtalakat
Manama – Bahrain: Gulf Aluminium Rolling Mill “GARMCO”, a portfolio company of Bahrain Mumtalakat Holding Company “Mumtalakat” announced that, following filing for reorganisation in February 2019, GARMCO had successfully made its first repayment of USD 23 million in accordance with the restructuring plan it had reached with its creditors in November 2021.
GARMCO settled its first repayment after the company recorded its highest levels of profitability since inception over the past year. The reorganisation plan has enabled GARMCO to repay 72% of the total value of its debt over the course of 11 years while converting the remaining 28% into company shares.
Mr. Arif Rahimi, Chairman of GARMCO and board representative of Mumtalakat, said: “This step reflects our commitment to executing the reorganisation plan which is backed by all relevant shareholders and is being driven by Mumtalakat. The plan has enabled us to continue operating and maintain our leading role in the Aluminium downstream industry sector.”
Mr. Mohamed Rafea, Chief Executive Officer of GARMCO, commented: “We are pleased with our results which demonstrate GARMCO’s ability to fulfil its obligations towards the shareholders and creditors according to the reorganisation plan. With the ongoing support of our shareholders via our board of directors, coupled with the commitment of GARMCO’s management and team, we will continue to focus on improving our operations to deliver quality products for our clients.”
GARMCO filed for chapter 11 in 2019 after facing challenges from a highly competitive regional market, and followed by the pandemic that impacted businesses and disrupted supply chains globally. The company successfully agreed with its creditors on a reorganisation plan to ensure the continuation of business operations while retaining its workforce.
Gulf Aluminium Rolling Mill “GARMCO” was founded in 1981 with Mumtalakat as one of its principal shareholders, and is regarded as one of the leading downstream aluminium manufacturing facilities in the Middle East for rolling, cutting, and fabricating high-grade aluminium that is exported to regional and global markets.