GARMCO announces first repayment to creditors

TDT | Manama                                        

The Daily Tribune – www.newsofbahrain.com   

Gulf Aluminium Rolling Mill “GARMCO”, a portfolio company of Bahrain Mumtalakat Holding Company announced its first repayment of USD 23 million to creditors in accordance with the restructuring plan signed in November 2021 following reorganisation in February 2019.

GARMCO said it 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. Arif Rahimi, Chairman of GARMCO and board representative of Mumtalakat, said: “The plan has enabled us to continue operating and maintain our leading role in the Aluminium downstream industry sector.”

Mohamed Rafea, Chief Executive Officer of GARMCO, said the company “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.

Gulf Aluminium Rolling Mill “GARMCO” was founded in 1981 with Mumtalakat as one of its principal shareholders.