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Logo of Saudi Cable Co.
Saudi Cable Co. announced that the contract signed with Al-Nawasi General Trading & Contracting Company (NTC Co.) for the purchase of cars as “non-current assets” for SAR 200 million was not implemented due to the failure of the latter to fulfill the contract requirements on the agreed dates, according to a bourse filing.
NTC Co. subsequently exceeded the time limits, forcing Saudi Cable to submit a request, on June 27, for the implementation of an order for the return of advance payment, resulting in the services of NTC Co. being suspended.
Furthermore, the company said it currently plans to initiate a legal claim before the commercial court to approve the termination of the contract and claim the amount illegally obtained by NTC Co., in addition to the penalty clause and other related claims.
The company said that the resulting cost of SAR 81.52 million no longer exists since the SAR 200 million contract has not been executed until now.
On May 5, Saudi Cable announced the purchase of SAR 200 million worth of new cars on credit from NTC Co. to resell them and finance working capital.
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