Saudi Oger is reportedly on the brink of shutdown owing to a cash crunch that has left the company unable to pay its employees.
The construction firm’s employees, many of whom are said to be expats, “suffered for months without salaries and many have already gone home”.
According to a source quoted in an AFP report, cited by Arabian Business, the firm is “closed” and currently has only one contract to work on in the kingdom.
“They have a contract in Jeddah I think for a royal palace but they have nothing else.”
Moreover, a former employee of the company, who requested to be identified as Robert, told AFP that Oger’s “last day of existence will be [30 June, 2017]”.
He added: “In two weeks, we will no longer talk of Saudi Oger.
“I have lost my future.”
Saudi Oger could not be reached for comment, according to AFP‘s report.
Last September, it was reported that the Saudi Arabian government has called off rescue talks with Saudi Oger.
The collapse of the talks leaves the troubled contractor facing a multibillion-dollar debt restructuring process, according to a Reuters report, citing an anonymous source.
A second KSA-based source told Reuters that, in addition to $4bn (SAR15bn) of bank loans, Saudi Oger owes approximately $670m (SAR2.5bn) to workers, and billions of riyals to contractors and suppliers.
Oger’s portfolio includes the King Abdullah University of Science and Technology (KAUST; pictured), Saudi Arabia’s first LEED-rated project.
Full article: http://www.constructionweekonline.com/article-44921-saudi-oger-reportedly-finished-amid-cash-crunch/