Hascol Petroleum Limited (PSX: HASCOL) on Monday approved a modified draft Scheme of Arrangement which encapsulates certain amendments/suggestions proposed by the secured creditors of the Company.
In a filing, the oil marketing company (OMC) said, “The Modified Scheme will be presented to the secured creditors for the requisite approval, followed by the members of the Company, after which the same shall be filed/submitted to the High Court of Sindh at Karachi for necessary steps (or as otherwise advised by the Company’s legal counsel”.
In September, the OMC identified a new restructuring model to revive the business. According to a corporate briefing session held at the time, the company decided that the proposed plan was to be shared with lenders and shall be implemented through a scheme of arrangements to be filed in the Sindh High court.
Hascol’s scrip at the bourse closed at Rs. 6.14, up 8.87 percent or Rs. 0.5 with a turnover of 42.4 million shares on Monday.
As of December 2021, the company operates a network of 667 retail sites, 19 of which are owned and controlled by Hascol. The development of under-construction sites was impacted earlier because of the working capital shortage.
In 2022, Hascol founder Mumtaz Hasas was arrested by the Federal Investigation Agency’s investigation over his involvement in a mega fraud case worth Rs. 54 billion.
Hascol’s first big loan in its long line of credit was from the Summit Bank in 2009. The NBP entered the picture in 2014 when it gave Rs. 2 billion to the petroleum dealer.