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Saudi Cable Crisis Compels on Financial Restructuring

During the six month period ended June 30, the group suffered a net loss of SAR 7.06mn

August 03, 2015

Saudi Cable Company faces a battle for survival despite the group slashing its loss in the first half of the year. The Tadawul-listed company is staring at the possibility of going out of business unless it can successfully restructure over SAR 1bn (USD 266mn) worth of debt, it announced.

However discussions with lenders have reached an advanced stage and terms are close to being secured, Saudi Cable said in a statement. During the six month period ended June 30, the group suffered a net loss of SAR 7.06mn, a huge improvement on the SAR 91.7mn deficit booked during the corresponding period a year earlier.

For the quarter ended June 30 Saudi Cable squeezed a profit of SAR 0.88mn against a loss of SAR 50.57mn in the second quarter of 2014. However its current liabilities exceed assets by SAR 680mn and accumulated losses have reached to SAR 374mn, representing 49.4 percent of the share capital.

“These circumstances indicate the existence of uncertainties that may cast doubt about the Group ability to continue as a going concern,” the company said in a statement to the Tadawul, the Saudi stock exchange.

 

Wire & Cable India