AlBaha pays SAR 1 mln to settle dispute with AlKhabeer Capital

AlBaha Investment and Development Co. on Wednesday said it has paid SAR 1.05 million to settle a legal dispute initiated by AlKhabeer Capital regarding a contract signed in 2007.

The Saudi-listed company has obtained a waiver from the financial firm for the remaining dues, as well as a pledge not to claim any further amounts, it said statement to Tadawul.

 Both parties have also signed a final clearance and discharge.

The settlement is expected to have a positive impact of SAR 1.95 million on AlBaha’s financials for Q4 2017, reversing a provision booked earlier for this purpose.

In April 2007, AlBaha had signed a SAR 5 million contract with AlKhabeer Capital to serve as a financial advisor for its capital hike.

AlBaha had paid SAR 2 million of the total sum owed, with a remaining balance of SAR 3 million due, in addition to compensation of SAR 250,000 and amounts paid by AlKhabeer to third parties that should have been paid by AlBaha under the contract.

In February 2013, AlBaha said it had booked a provision of SAR 3 million for the amounts due to AlKhabeer Capital.