Saudi construction company Mohammad Al Mojil Group (MMG) has appointed Hafiz Shafei as its new chief executive officer, the company which is restructuring operations following heavy losses, said on Monday.

Prior to his appointment, Shafei was director of operations at the firm, which ran up extensive debts when it overextended itself to try and take advantage of a construction boom at the turn of the decade.

Shafei succeeds William Milligan who resigned due to "personal circumstances", MMG said in a statement to the stock exchange without elaborating.

Last year, MMG executives told Reuters the company aims to collect between SR700 and SR900 million ($187-$240 million) in payments owed from other firms as part of a recovery plan to save the 60-year-old company.

MMG's shares have not traded on the Saudi bourse since July 2012, when they were suspended by the regulator after breaching rules relating to accumulated losses.  - Reuters