The Egyptian General Assembly of the Public Company for Paper Industry - Rakta, under liquidation, has approved the report of the liquidator on the company's financial position and accounts for the period ending June 30, 2026. The assembly also tasked the liquidator with updating the timeline for completing liquidation by March 31, 2027. This decision was made during a meeting where the assembly reviewed the liquidator's report and the financial statements.
One of the key issues raised was the status of 5.6 feddans of land allocated for a sports complex for Rakta employees. The company confirmed that this land, part of a larger 103-feddan area, was allocated to the Ministry of Youth and Sports for the sports complex. Additionally, the Egyptian Post Office has been renting a 14-square-meter space since 1963, with a proposed three-year contract or until liquidation completion.
The report also highlighted concerns over the sale of Rakta's land in Shouna Al-Mansoura and the transfer of ownership to the holding company. The company stated that the land's ownership was transferred to the holding company in 2007, with the sale value to be settled at a later date. Furthermore, the holding company sold the land in Garag Mahram Bak for 8.7 million EGP, reducing Rakta's debts.
The report also mentioned that Rakta's accounts showed 3.616 million EGP in insurance claims from various parties, including Petrotrade and the Egyptian Post Office. The company provided updates on these claims, stating that some were under negotiation or awaiting responses. Additionally, Rakta had 589,000 EGP in tax arrears, which it planned to use against future tax liabilities.
The company's accounts also revealed 4.6 million EGP in undistributed dividends, which had been frozen for several years. Rakta has contacted its holding company to resolve this issue. Furthermore, a dispute with Quality Security Services and Suez Canal Insurance over stolen and damaged goods is ongoing, with the case pending before the economic court.
In terms of assets, Rakta's report mentioned 120,000 EGP in debt from the sale of goods to a related company under liquidation, Simeo. The company also had 220,000 EGP in claims against an engineer for copper shortages. Moreover, there were 4,000 EGP in inventory held by third parties.
The company's liquidator has been tasked with updating the timeline for completing liquidation and exploring options for reducing the company's workforce. The holding company will review the updated timeline and the report on workforce reduction. Key issues, including the status of Rakta's lands, disputes with other companies, and the company's liabilities, remain under scrutiny as the liquidation process continues.
Key points
- Rakta's liquidation process is ongoing, with the company facing scrutiny over its assets and liabilities.
- The company's accounts reveal several disputes and uncertainties, including 4.6 million EGP in undistributed dividends and disputes with other companies.
- The liquidator has been tasked with updating the timeline for completing liquidation and exploring options for reducing the company's workforce.
