Paramount Spinning remain non-operational

July 14, 2026 (MLN): Three PSX-listed spinning mills, Paramount Spinning Mills, Gulistan Spinning Mills,and Gulshan Spinning Mills, remain non-operational entities, having gone through a Scheme of Arrangement sanctioned by the Sindh High Court to settle their existing liabilities through the sale of assets.

In separate quarterly progress reports for the period ended June 30, 2026, all three companies confirmed that no commercial production or business operations were carried out during the quarter under review.

The Scheme of Arrangement, sanctioned under Section 279 of the Companies Act, 2017, was approved by secured creditors and shareholders in meetings held under a court-appointed chairmanship, covering the sale of all company assets for settlement of existing liabilities.

For Paramount Spinning Mills, all assets have already been sold through the Asset Sale Committee constituted under the Scheme, with proceeds distributed by the Agent Bank among secured creditors on a pari passu basis as full and final settlement of liabilities, leaving the company without any operational assets.

Gulistan Spinning Mills and Gulshan Spinning Mills reported that the sale of assets by the Asset Sale Committee remains under way, with proceeds being distributed by the Agent Bank to secured creditors on the same pari passu basis.

Both companies noted there was no material change in operational status compared to the previous quarter, and once completed, neither will retain any assets.

All three companies stated they are at a preliminary stage of evaluating strategic options for the future, subject to regulatory approvals and availability of resources, and do not currently envisage commencement or resumption of commercial production or business operations. Any material development will be disclosed to the market as required.

The aforementioned information was disseminated through a notification to Exchange.

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