Saudi Cable’s board to file for financial restructuring procedure

Logo of Saudi Cable Co.

Saudi Cable Co.’s board of directors, in its meeting held on Nov. 1, decided to request the commercial court’s approval to open the financial restructuring procedure, according to a statement to Tadawul.

This comes in order to preserve the shareholders' and creditors' rights and the continuity of the company, the statement noted.

The board also authorized Managing Director Nael Fayez to take the necessary relevant regulatory measures to implement the decision.

In October, Saudi Cable’s board of directors recommended to cut capital by 89.5% from SAR 66.73 million to SAR 7 million to offset accumulated losses, and to later increase capital via a SAR 280 million rights issue, Argaam reported.

The board also authorized the management to sign a memorandum of understanding (MoU) with the investors willing to buy a part of the company’s loans in return for the issuance of shares in their favor.

Trading on the company's shares is suspended since May 8, 2022, at SAR 57.20.