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Tue 29 Dec 2015 06:46 PM

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Saudi's Mobily agrees with majority of lenders to waive breach

Telco had hoped to reach a deal with lenders to set new covenants for some outstanding loans by the end of 2015

Saudi's Mobily agrees with majority of lenders to waive breach

Saudi Arabia's Etihad Etisalat (Mobily) has agreed with the majority of its lenders to waive the breach of covenant under several loan facilities totalling 12.1 billion riyals ($3.23 billion), it said on Tuesday.

Mobily is still in negotiations with others lenders relating to its export credit agency facilities and other bilateral facilities to reach a similar waiver agreement, it said in a bourse statement.

The telecoms company, part-owned by Abu Dhabi-listed Etisalat, revealed in February that it was in breach of the terms of loans from various lenders after issuing a drastically reduced restatement of previously announced profit.

It had hoped to reach an agreement with lenders to set new covenants for some outstanding loans by the end of 2015.

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