Agha Steel secures key HBL restructuring deal

July 14, 2026 (MLN): Agha Steel Industries Limited (PSX: AGHA) has entered into a bilateral debt restructuring agreement with Habib Bank Limited (HBL).

This marked a significant step in the company's financial turnaround and long-term revival strategy.

In a material information notice submitted to the Pakistan Stock Exchange (PSX), the company said the agreement was executed on July 14, 2026, under the Corporate Debt Restructuring (CDR) framework.

According to the disclosure, Agha Steel has been engaged in restructuring discussions with its financial creditors, including HBL, following operational disruptions caused by the 2022 floods and the prolonged economic slowdown.

The company noted that these challenges adversely affected its ability to generate sufficient cash flows to service debt obligations.

The restructuring arrangement with HBL covers nearly 30% of Agha Steel's total debt exposure, making it a major milestone in the company's broader financial rehabilitation plan.

The company stated that the restructuring is expected to provide the financial flexibility needed to optimize operations, strengthen liquidity, and align debt servicing obligations with projected operating cash flows.

Management believes the agreement will support the stabilization of the business and enhance its long-term operational sustainability.

Agha Steel further informed investors that it remains in active discussions with its other lenders to complete and implement the remaining debt restructuring arrangements.

The company said it will continue to keep the market informed of any material developments related to these negotiations.

The disclosure was made in accordance with the Securities Act, 2015 and PSX regulations governing material information.

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