Saudi Arabia lenders discuss Mobily’s accounting errors on SAR 1

Seven creditors of Etihad Etisalat Co. (Mobily) convened on Monday in Riyadh to discuss the operator’s financial errors on SAR 10 billion of loans, Bloomberg quoted three well-informed sources as saying.

The lenders discussed whether loan covenants were breached because of the accounting errors.

However, Mobily was not available for comment. According to Bloomberg, the meeting was attended by representatives of Samba Financial Group, Banque Saudi Fransi, National Commercial Bank, Riyad Bank, Saudi British Bank, Al Rajhi Bank and Saudi Hollandi Bank. The banks had earlier granted Mobily loans, according to previous disclosures by the company.

According to data available on Argaam, the telecom operator restated earnings statements dating back to the beginning of 2013. Mobily, Saudi Arabia’s second-largest telecom operator, also suspended chief executive Khalid Omar Al Kaf in November after revealing financial errors and put his deputy Serkan Okandan in charge.

Mobily reported surprise losses of SAR 2.277 billion in the fourth quarter of 2014, pushing net profits sharply lower to SAR 220 million at the end of 2014, compared to SAR 5.94 billion a year earlier.