Nael Fayez, CEO of Saudi Cable Co.
Saudi Cable Co.'s financial restructuring procedure (FRP) will help it fulfill the rights of creditors and ensure the continuity of its business, said CEO Nael Fayez.
In an interview with Argaam, Fayez indicated that there is a fundamental difference between financial restructuring and liquidation, as the latter involves selling assets to repay creditors without taking into account the continuity of business.
"We have several programs that we will present to the court within six months, with the help and supervision of the financial reorganization trustee, including the capitalization of some debts, as a group of creditors agreed to transfer their entire debts into equity shares in the company. This is in addition to attracting new investments, raising capital, and divesting some investments and sites inside and outside the Kingdom," said Fayez.
Commenting on the Capital Market Authority’s (CMA) decision to lift trading suspension on Saudi Cable shares and Tadawul’s announcement to keep trading suspension in the same session today, the CEO said, “The authority’s announcement came after the commercial court’s approval on the FRP. Tadawul's announcement came as the company did not publish its financial statements. We are currently working with the external auditor on publishing them soon".
Fayez also stressed that, despite the company's difficult financial conditions, it operates and produces at a low rate of 5-13% of its production capacity. It has contracts from public and private companies in the Saudi and GCC markets.
He also indicated that the debts submitted to the court ranged between SAR 400-500 million, pointing out that Saudi Cable owns a number of assets and contracts that will ensure a successful FRP and business continuity.
Comments
{{DisplayName}}
{{ElapsedTime}}