‎Saudi Cable objects to FRP, says includes flawed procedures, fundamental defects

Logo of Saudi Cable Co.

Saudi Cable Co. announced its objection to the preliminary ruling issued by the Commercial Court in Jeddah regarding the financial reorganization proposal (FRP) submitted by the previous executive management without approval from the board of directors.

In a statement to Argaam, the company said that it will submit this objection to the Court of Appeal within the statutory period, in order to preserve its interests and the rights of creditors and shareholders, and in compliance with the principles of transparency and disclosure and the applicable regulations.

The company’s management believes that there are fundamental reasons that require objection, as the FRP contains a defect in the formal procedures and fundamental defects in content.

Managing Director Khaled Khashogji had indicated in a statement to Argaam that the board of directors, which began its term on April 4, 2024, had studied the FRP and found out that there were defects in the formal procedures and fundamental defects in the content. 

Members of the previous board of directors had not seen the proposal before it was submitted by the previous executive management, and there was no decision from the previous or current board authorizing the CEO to submit it to the reorganization trustee in this manner. The company’s management notified the trustee of these violations and essential observations to submit them to the Commercial Court in Jeddah, but he rejected the management’s request for a deadline to submit documents supporting its objection due to time constraints, he added. 

The company confirmed that it will inform shareholders, creditors and stakeholders of its observations about defects that it believes affect the validity of the FRP in terms of form and content, in accordance with the applicable regulations.

Meanwhile, Saudi Cable shareholders will convene an extraordinary general meeting on June 4, to vote on the FRP.

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