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Logo of Middle East Specialized Cables Co. (MESC)
Middle East Specialized Cables Co. (MESC) signed, on May 23, a settlement agreement with the plaintiff parties in Jordan to waive all lawsuits and legal disputes, in line with the company’s plans to focus on its feasible investment, according to a bourse statement.
Under the agreement, it was committed to discharge MESC KSA Co. and its board of directors towards the plaintiffs in Jordan from any claim related to, or arising from, the work of the invested companies in Jordan (MESC Jordan Co. and MESC for Medium and High Voltage Cables Co.) during the period of its investment in those companies, whatever it may be the reason or source of this claim.
As part of the agreement, MESC KSA Co. undertook to assign all of the shares owned by it and pledged in its favor in MESC Jordan, which has ceased to operate and its assets sold via public auction.
It also agreed to pay the amounts belonging to MESC Jordan, which is owed by MESC KSA, as announced on Feb. 22, 2021.
It assigned all of its shares in MESC for Medium and High Voltage Cables - under liquidation; and waived all debts belong to it owed by MESC for Medium and High Voltage Cables and canceled the mortgage on the company’s production line regulated in its favor.
All financial provisions have been booked for the obligations arising from this agreement, and no financial impact is expected later, the statement added.
Meanwhile, MESC noted that the plaintiff parties have committed to bear all fees, expenses and commissions to be paid for the purposes of implementing this agreement.
In February 2021, MESC said that a procedural request was issued by the Amman Court to convert the precautionary seizure into an executive seizure regarding the funds belonging to MESC-Jordan, amounting to SAR 11.91 million, according to data compiled by Argaam.
MESC holds 19.9% stake of MESC-Jordan.
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