Al-Baha provides update on case with Al-Sateaa

Logo of Al-Baha Investment and Development Co.

Al-Baha Investment and Development Co. stated that a court hearing was scheduled for July 7 to consider its ongoing case with Al-Sateaa Modern Contracting Co.

In a Tadawul statement, the company added that the hearing is to address a court order requiring Al-Baha to complete the ownership transfer of 134 land parcels at the notary public, representing a 50% undivided stake in a property located in Al-Murouj, Al-Sail Al-Sagheer, Taif Governorate, to the plaintiff.

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A previous ruling from the Jeddah General Court, along with a decision from the Fifth Civil Circuit, ordered a freeze on any transactions related to the disputed land.

Al-Baha said it will continue to monitor developments and disclose any material updates accordingly.

The company added there is no change in the relevant financial impact. It had already set aside a SAR 84 million provision to cover expected losses from its asset-swap deal with Al-Sateaa.

Al-Baha believes the assets it was meant to receive are significantly impaired due to obsolescence, and the provision reflects the book value of performance obligations owed to the other party.