Molan wins initial ruling to halt payment of SAR 17.9M to Yara International

A Riyadh court suspends enforcement of the SAR 17.88 million judgment against Molan Steel until the contract nullification case is resolved

Molan Steel Co. said the Commercial Court in Riyadh issued on Nov. 16 an initial ruling suspending the enforcement of a previous judgment that obliged the company to pay SAR 17.88 million to Yara International Ltd. The initial ruling is pending a decision on a lawsuit seeking to nullify the underlying contract.

The company said in a statement to Tadawul today, Nov. 17 that the ruling is subject to immediate execution.

According to Argaam data, Molan announced last December that it had signed an agreement with Yara International Ltd. to acquire 100% of Mayar International Industry Co. for SAR 34.88 million.

In July, Molan received a notice of a commercial lawsuit filed by Yara with the Riyadh Commercial Court, demanding SAR 17.88 million in dues related to the sale of its subsidiary, Mayar International Industry, in addition to SAR 2 million in compensation for litigation damages.

On Sept. 15, the Riyadh Commercial Court issued an initial ruling ordering Molan to pay SAR 17.9 million to Yara International.

Molan said last November that a final ruling had been issued in Yara’s lawsuit, upholding the initial judgment requiring Molan to pay only SAR 17.9 million, while dismissing all other claims.