Saudi Cable Company – Financial Restructuring Procedure Update

A significant development has unfolded in Saudi Arabia’s corporate sector on Wednesday, June 7, 2023. The renowned Saudi Cable Company has been declared subject to the Financial Restructuring Procedure (“FRP“) as per the Saudi Bankruptcy Law, subsequent to an appeal hearing at the Riyadh Commercial Court.

The development holds great significance for various stakeholders, including creditors, suppliers, and other entities with financial ties to the Saudi Cable Company. Given the company’s substantial influence and extensive operations, numerous sectors such as construction, manufacturing, and telecommunications in Saudi Arabia and the broader Middle East region may potentially experience its impact.

The court’s ruling includes several noteworthy points:

1. A reversal of the previous judgment by the Fourth Circuit in the Commercial Court in Jeddah.
2. The initiation of the Financial Restructuring Procedure for Saudi Cable Company.
3. The appointment of Walid Subhi as the Trustee to manage this procedure.
4. A window of 180 days is granted to the company to submit its FRP proposal.

This change in the financial status of the Saudi Cable Company has the potential to affect both its current and future operations, along with its relationships with diverse stakeholders.

How can we help?

If you have any connections to the Saudi Cable Company, such as outstanding debts, claims, or other financial obligations, Al Tamimi & Company are available to offer our assistance. Our team of skilled lawyers is prepared to provide you with specialised legal advice and guidance.

Considering the insolvency nature of this matter, it is important to seek prompt and professional advice in order to effectively handle any potential challenges that may arise.