Mobily agrees with most lenders to waive breach of covenant

Etihad Etisalat Co. (Mobily), Saudi Arabia’s second biggest telecom operator, has agreed with the majority of its lenders to waive the breach of covenant regarding its SAR 12.1 billion loan facilities, the company said in a statement to the Saudi bourse, Tadawul.

Mobily is still in negotiations with other lenders relating to its export credit agency facilities to reach a similar agreement.

In December last year, the company, partially owned by Abu Dhabi-listed Etisalat, said it was in breach of the terms of loans from several lenders which led to classifying its borrowings as liabilities, according to Argaam.

In July, Mobily restated its results for the 27 months to March 31, cutting total profit over the period by about SAR 1.76 billion in an attempt to resolve accounting errors.