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Tue 17 May 2016 12:06 PM

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Remaining Mobily lenders agree to waive breach of loan terms

Etisalat-owned telco says final lenders on board over breaches in loan facilities worth $3.2bn

Remaining Mobily lenders agree to waive breach of loan terms

Saudi Arabian telecoms company Etihad Etisalat (Mobily) said on Tuesday remaining lenders had agreed to waive breaches in the terms of its borrowing agreements.

In December, Mobily said most of its lenders had agreed to waive breaches in the terms of loan facilities totalling 12.1 billion riyals ($3.2 billion).

At time, it said it would continue talks with other lenders relating to its export credit agency facilities and other bilateral facilities to reach a similar agreement.

Mobily had 14.4 billion riyals in liabilities as of March 31. As part of its loan agreements, the company was obliged to maintain a certain level of earnings.

But it failed to meet these terms as it made a series of earnings restatements that in total cut 27 months of profits to March 31, 2015 by 3.63 billion riyals, which it blamed on accounting errors.

Mobily is an affiliate of Abu Dhabi-listed Etisalat.

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