Arab Finance: The National Investment Bank (NIB) has successfully implemented a comprehensive restructuring plan for Samanoud Textiles, in which it holds a 52% stake, marking the company's return to production after years of financial and operational challenges, according to a statement.
As part of the recovery plan, the NIB injected more than EGP 74 million in new funding to provide working capital after the company's complete shutdown.
The financing supported modernization of production facilities and expansion of the product portfolio, enabling the company to resume production and meet a significant share of its financial obligations through operating revenues.
Additionally, the restructuring focused on improving employee welfare. The company, which employs 563 workers, more than doubled its monthly wage bill from EGP 900,000 in fiscal year (Fإ) 2019/2020 to EGP 1.87 million by October 2024.
The plan included implementing the National Wages Council’s (NWC) decisions, granting periodic and exceptional bonuses, and resolving the voluntary retirement case of 185 female employees while ensuring their full legal and financial entitlements.
For his part, Minister of Planning and Economic Development and Chairman of the NIB Ahmed Rostom said the bank is pursuing a comprehensive strategy to restructure its subsidiaries to maximize their contribution to the national economy.
He described Samanoud Textiles as a successful example of reviving distressed but viable companies and returning them to production and profitability.
Meanwhile, Ashraf Negm, the Vice Chairman and Managing Director of NIB, affirmed that the restructuring of Samanoud is part of the NIB's broader strategy to optimize its asset portfolio in coordination with the Ministry of Planning and Economic Development, strengthen the bank's financial position, and enhance its role in supporting economic and social development.
In June, Egypt signed two framework agreements to settle historical financial liabilities worth EGP 196 billion, involving the NIB and several state entities, some dating back to the 1980s.
