AMMAN: Several banks are extending a lifeline to the Middle East Specialized Cables Company/MESC-Jordan with a multimillion dinar syndicated loan. The company, 49 per cent owned by Saudi Arabia’s Middle East Specialised Cables Company, has all the product range of low, medium and high voltage power cables at plants in Mafraq, 60 kilometres north of Amman.
According to the auditor, EY/Jordan, all the assets of MESC-Jordan and its affiliate, MESC for Medium and High Voltage Cables Company, were hypothecated as security for the lending in addition to the affiliated company’s guarantee and the endorsement of insurance policies on the company’s assets to the agent bank, namely Housing Bank.
“The amount represents 133 per cent of MESC-Jordan’s JD38.9 million paid-up capital and, consequently, depicts a JD9.3 million deficit in the shareholders equity,” EY/Jordan wrote. The annual report disclosed the losses from 2010 until 2014 to be JD11.5 million, JD12.1 million, JD6.4 million, JD3.2 million and JD4.6 million respectively. The auditor indicated in the quarterly report that the general assembly of shareholders decided in an extraordinary meeting in 2011 to increase the company’s capital by JD20 million through a convoluted process.
