In a significant step aimed at strengthening its financial position and addressing its outstanding obligations, Saudi Cable Company announced that it has secured financing in the form of an interest-free loan totaling SAR 107.9 million. This announcement, made through the Saudi Stock Exchange (Tadawul), marks a major turning point in the company's financial restructuring process.
Payment details and schedule
The company explained in its official statement that the loan amount was disbursed in three main installments to ensure balanced cash flow. The first installment, amounting to SAR 55.4 million, was received on December 18, followed by a second installment of SAR 2.6 million on December 24, and concluding with the third installment of SAR 49.9 million on December 29. This financing was provided by the lender Ibrahim Al Rajhi, and the loan term extends until the final repayment date of March 3, 2026.
Payment mechanism and penalty conditions
Regarding the repayment mechanism for this financial obligation, the company has established a specific schedule beginning with a payment of SAR 45 million due on January 15th. The second payment of SAR 10.4 million is due on March 1st, 2026, followed by a third payment of SAR 2.6 million on March 3rd, and finally a fourth payment of SAR 49.9 million, also due on March 3rd, 2026.
The agreement included a strict condition stipulating that if the company failed to make any of the aforementioned payments within three calendar days of their due date, all remaining payments would become immediately due and payable by the company, regardless of their original due dates. As collateral for this financing, the company provided promissory notes covering the entire loan amount.
Purpose of the funding: To meet obligations
The primary objective of this financing is to settle outstanding payments owed to a significant segment of stakeholders, namely small creditors and current or former employees. This step comes in response to requests included in the list of claims approved by the Fourth Circuit of the Jeddah Commercial Court, reflecting the company's legal and ethical commitment to its employees and creditors.
The context of financial restructuring and the importance of the loan
This event takes on particular significance when viewed within the context of the overall situation of Saudi Cable Company, which is undergoing financial restructuring under the Saudi Bankruptcy Law. Obtaining a "good loan"—an interest-free loan—is a vital lifeline for companies facing financial difficulties, providing much-needed liquidity without burdening them with additional financial obligations.
This move indicates tangible progress in implementing the company's rescue plan, as repayment to small creditors and employees is a cornerstone for restoring market confidence and improving the company's reputation. Furthermore, the intervention of major investors to provide financial support sends positive signals to shareholders and the financial market regarding the company's potential for recovery and return to a sound footing.
Disclosure of related parties
In the interest of transparency and good governance, the company disclosed the involvement of a related party in this transaction, namely board member Turki Al-Rajhi. Accordingly, and in accordance with the regulations of the Capital Market Authority, the financing agreement will be presented to the General Assembly of Shareholders for a vote and ratification to ensure the integrity of the regulatory procedures.
