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Methanol Chemicals Company (KIMANOL) announced that the Commercial Court in Dammam has suspended proceedings in two lawsuits filed against the company. One relates to the acquisition of Dar Chemicals and the other concerns a claim by former sellers of Global Industries for Chemical with a value of 73 million Saudi Riyals.
The company stated in a filing that the suspension is due to the completion of another related lawsuit, preventing any potential conflict in rulings.
According to data available from Argaam, former owners of Global Industries for Chemical filed a commercial lawsuit against KIMANOL in the Dammam Commercial Court in August, seeking 73 million Saudi Riyals, representing the remaining balance of the purchase price agreed upon for Global Industries for Chemical.
In December, former owners of Dar Chemicals filed commercial lawsuits before the Commercial Court in Dammam regarding the acquisition of Dar Chemicals.
In January, the court accepted a request from the former owners of the acquired Dar Chemicals to amend the claim amount in the lawsuit to 185.22 million Saudi Riyals, up from 45.11 million Saudi Riyals.
Methanol Chemicals Company (KIMANOL) has received a favorable ruling from the Commercial Court in Dammam, suspending two ongoing legal proceedings. The decision, announced by the company, impacts lawsuits related to its acquisitions of both Dar Chemicals and Global Industries for Chemical.
The court has paused proceedings in a case brought by former sellers of Global Industries for Chemical, who are seeking 73 million Saudi Riyals. KIMANOL stated the suspension is a result of the completion of a related case, designed to avoid potential conflicts in judicial outcomes.
A separate lawsuit filed by previous owners of Dar Chemicals, concerning the terms of KIMANOL’s acquisition of the company, is also subject to the court’s suspension. In January, the court had previously approved an amendment to that claim, increasing the sought amount to 185.22 million Saudi Riyals from an initial 45.11 million Saudi Riyals.
The rulings represent a positive development for KIMANOL as it navigates these legal challenges. The company’s stock performance will likely be monitored by investors as these cases progress, reflecting the broader market’s sensitivity to legal and financial risks.
