Saudi Cables Alleviates Financial Woes Through Tripartite Agreement, Transferring SAR 232.73 Million Debt to Tathmeer Investment

On Wednesday, Saudi Cable Company (SCC) announced the signing of a significant tripartite agreement involving Al Rajhi Banking Investment Company and Tathmeer Investment Company. According to the agreement, Al Rajhi Banking and Investment Company transferred its rights to an outstanding debt owed by Saudi Cable Company, totaling SAR 232,737,563 (two hundred and thirty-two million seven hundred thirty-seven thousand five hundred and sixty-three) Saudi Riyals, in favor of Tathmeer Investment Company. The terms and conditions of this transfer are outlined in the agreement, and its primary objective is to aid SCC in overcoming its current financial crisis.

In elucidating the details, the company disclosed that Tathmeer Investment Company intends to capitalize on this indebtedness later, exchanging it for ownership of shares in SCC. This strategic move enables SCC to enhance operational efficiency, reduce its debt burden, and fortify its position to successfully conclude the Financial Restructuring Procedure, thus positively impacting the company’s overall interests.

Furthermore, Al Rajhi Banking Investment Company, in alignment with the agreement and pertinent amendments, commits to transferring its rights to the outstanding debt owed by Saudi Cable Company to Tathmeer Investment Company by the agreed final date of November 28, 2023.

The company anticipates that this agreement will yield positive financial effects on the company as a whole, and specifically on the Financial Restructuring Proposal, particularly in the first quarter of 2024. It is noteworthy that the agreement has received approval from the Financial Restructuring Procedure Bankruptcy Trustee, and it does not require financial contributions from the shareholders.