Samcrete Egypt Engineers & Contractors (SMCS.CA SMCSA.CA) has asked banks in Egypt to provide it with letter of guarantee worth EGP 400 million to finance its new contracting process in Kuwait.
Sources said the company asked the Arab Investment Bank (AIB) to receive letter of guarantee, but the bank has not decided to agree or not. The company is facing a number of problems with some banks because it defaulted on payments.
Sources revealed that the company is owned by the businessman Sami Saad, chairman of Egyptian German Automotive Company (EGA) and owner of Mercedes Benz Egypt. Saad received loans worth EGP 250 million without collateral and did not repay them. The negotiations between him and banks were halted.
Samcrete Egypt Engineers & Contractors achieved net profit of EGP 10.49 million at the end of September 2012, compared with EGP 11.933 million at the end of the compared period in 2011, registering a decline of 12.1%.
