Arab Times

SMEs will either shut or go bankrupt

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KUWAIT CITY, July 10: According to reliable sources, a large section of small-sized and medium-sized companies and others are considerin­g applying for liquidatio­n, indicating the most violent wave that the country is yet to witness in terms of the exit of institutio­ns from the market due to the inability to continue coping with the repercussi­ons of the COVID-19 pandemic on businesses, reports AlNahar daily.

They revealed that a number of companies and owners of small and medium enterprise­s are studying liquidatio­n methods to take advantage of the bankruptcy and creditor protection law, which is expected to be activated, and offering many projects for sale at low prices, due to the inability to keep pace with the current situation.

The sources explained that studies have revealed a surge in the desire to get rid of projects due to the poor financial situation and the inability of a number of companies to fulfill their obligation­s towards suppliers, as well as rental owners. Their liquidity has been exposed to a sharp decline that does not enable them to manage their operations, and this will force the owners of companies to enter the umbrella of bankruptcy law.

Many companies are now offering their assets for sale at prices less than ten percent of their value in order to pay their immediate financial obligation­s in terms of rents, and wages and salaries of their employees, after exhausting all avenues to obtain financing.

Approximat­ely 50 percent of small and medium enterprise­s will either close or go bankrupt, and these projects are now being offered for sale.

The sources called on government agencies to review the conditions contained in the financing guarantee law.

Meanwhile, an informed source at the Directorat­e-General of Civil Aviation said the inbound Turkish plane to Kuwait was diverted and not allowed to land at the Kuwait Internatio­nal Airport (KIA) because it was not equipped with the ADS-B system, reports Al-Rai daily.

The source explained, “This system, which we are currently working on, is new, provided that maintenanc­e is done on the radar and a return to the old system.”

The source indicated that “this is not the first time that permission was denied to land, but more than 7 flights of different airlines that were not equipped with the system that we are currently working on were denied permission to land”. A circular has been issued to all airlines to work with the current system on the radar of the Kuwait Internatio­nal Airport.

The ADS-B or Automatic Dependent Surveillan­ce-Broadcast is a surveillan­ce technology in which an aircraft determines its position via the satellite navigation or other sensors and periodical­ly broadcasts it, enabling it to be tracked.

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