Saudi Cable in talks with lenders to restructure debt, says chairman

Saudi Cable Company (SCC) is currently negotiating with lenders to reach a settlement as it reduces its debt and cuts the number of its creditors to only three, Chairman Meyassar Nowailati told Al Arabiya TV.

The firm’s rescue plan includes three main aspects: returning to trading on Tadawul after disclosing financial statements, rescheduling loans, and restructuring the company, he said.

These measures, however, may not be sufficient to resolve the situation since its losses have reached 43 percent of capital, but it is being resolved, he added.

The losses are attributed mainly to lack of working capital due to its dispute with lenders, which has added pressure on operating cash flows and kept the company from boosting production and achieving good earnings, the chairman said.

As for the company’s dispute with its external auditor, Nowailati said it is mainly because the auditor wanted to issue a non-disclosure budget, which would’ve been a “death sentence” for the firm, as it would halt funding and hurt the company’s reputation.