The Board of Directors of Hascol Petroleum Limited in a meeting yesterday approved the plan for rehabilitation of the company through restructuring and settlement of liabilities of the company as per the Rehabilitation Plan prepared by the management.
According to the company’s stock filing, the Board has approved the draft of the letter to be sent to all secured creditors/banks/financial institutions, conveying the Rehabilitation Plan and the process to be followed by the company for implementing it under a Scheme of Arrangement to be presented to the High Court of Sindh at Karachi under Section 279-282 of the Companies Act 2017.
Reconfirming the press release yesterday, the approval paves way for rehabilitation and restructuring. This will result in
- Settlement of outstanding Rs. 54 billion debt
- Provide liquidity to the company to get back to its full revenue potential.
The company’s board has further given the management a go-ahead to prepare the Scheme on the basis of the Rehabilitation Plan in consultation for such purpose and present the same for approval of the board for submission before the relevant competent court.
The Scheme, however, is subject to approval by creditors and shareholders and sanction of the competent court as per the requirement of the relevant law and requisite approvals to be obtained from competent authorities.
In an environment with better margins, lower finance costs, and the world’s largest oil trading company as a major shareholder the company, future looks positive
