Saudi Cable files lawsuit against Rawafed Almostaqbal

Logo of Saudi Cable Co.

Saudi Cable Co. filed a lawsuit against Rawafed Almostaqbal Co. before the Commercial Court in Jeddah, demanding the cancellation of a right transfer contract for the payment of a debt assignment between Rawafed Almostaqbal, Noble Resources International and Saudi Cable.

In a statement to Tadawul, the company said Rawafed Almostaqbal purchased SAR 101.92 million in existing debt owed by Saudi Cable in favor of Noble Resources International, after Rawafed Almostaqbal obtained a discount of SAR 68.17 million from the original debt amount.

Subsequently, Rawafed Almostaqbal demanded that Saudi Cable convert the full amount of SAR 101.92 million into shares at the nominal value of SAR 10 per share, pursuant to a contract signed between the former management of Saudi Cable and Rawafed Almostaqbal, without the existence of statutory authority granting the former signatories of Saudi Cable the power to execute such a transaction.

Saudi Cable further highlighted that the reasons for filing the lawsuit are that the contract contains a number of formal and substantive violations, and that the board of directors (the duly authorized body) rejected the agreement pursuant to its resolution dated July 17, 2024.

Saudi Cable also noted that it is not possible to estimate any potential liability that may arise from the lawsuit until court proceedings commence, adding that it will disclose any material developments related to this matter as they occur.

According to the statement, the date of the judicial hearing was set for Feb. 16. Should the court dismiss the lawsuit by final judgment, the current status remains unchanged. Conversely, if a final ruling is issued in favor of the company, the legal and financial standing will revert to the state existing prior to the execution of the debt assignment agreement.