Saudi Cable to apply for EGM to vote on filing liability lawsuit against former board

Logo of Saudi Cable Co.

Saudi Cable Co. announced that it will apply for an extraordinary general meeting (EGM), based on Article (90) of the Companies Law, and upon a letter from a number of shareholders who collectively own more than 5% of the company's capital, according to a statement to Tadawul. 

Shareholders will discuss the firm's plan for the next six months, as well as the dismissal of some board members and hold them accountable. 

In addition, shareholders will discuss filing a liability lawsuit against the former board members, including Chairman Meyassar Nowailati for the period from Jan. 14, 2018 to Jan. 13, 2021. 

Saudi Cable will request its shareholders to vote on transferring part of the company’s loans to equity shares in favor of some creditors and those wishing to invest in the loan purchase. This is subject to the approval of the Capital Market Authority (CMA) and relevant competent authorities. 

 Any further developments will be announced in due course when a financial advisor is appointed. 

The board of directors, in its meeting held on Nov. 1, decided to request the commercial court for approval to open the financial restructuring procedure, according to data available with Argaam. 

In October, the board recommended to cut capital by 89.5% from SAR 66.73 million to SAR 7 million to offset accumulated losses. The board of directors also proposed to later increase capital via a SAR 280 million rights issue.

Further, the board approved authorizing the management to sign a memorandum of understanding (MoU) with the investors willing to buy a part of the company’s loans in return for the issuance of shares in their favor.

The stock has been suspended from trading since May 8, 2022, when it closed at SAR 57.20.