Saudi Cable terminates legal consultant contract

Logo of Saudi Cable Co.

Saudi Cable Co. (SCC) terminated a legal consultation contract with Wael Fadl Bafakih Lawyers and Legal Consultants, its legal consultant.

In a statement to Tadawul, the company explained that the lawyer’s contract was terminated due to their written claim for a grant of 18% of the company’s current shares by holding an extraordinary general meeting (EGM) to vote on a capital hike by granting 1.22 million shares based on converting their alleged debt into shares at SAR 16 per share. The grant was based on a contract signed with the company, which was represented by former CEO Nael Fayez.

By reviewing the contract, the company's management found that an agreement was reached with the lawyer's office and the company, represented by Fayez, to grant the company's lawyer a 2.5% of the total claims of creditors identified during the financial restructuring procedures (FRP) conducted by the company and the FRP trustee.

Upon referring to the judgment issued by the fourth circuit at Jeddah Commercial Court, in lawsuit No. 103 on Jan. 1, 2023, it was found that the judgment stipulates that the person who listed creditors and submitted the list to the court was the FRP trustee and not the company's lawyer.

The court ruled to approve the list of claims registered with application No. 131 submitted by the proceedings officer Walid Mohammed Subhi in the bankruptcy lawsuit No. 103 for 2023.

Saudi Cable’s lawyer recommendations included in the FRP were against the interests of the company's shareholders, based on an agreement with the previous executive management. These unjust recommendations would have caused severe losses to the shareholders if implemented.

The company affirmed that it will take necessary legal actions to protect its rights and shareholders' interests.