GUTM remains non-operational as asset sale proceeds under court-sanctioned scheme

October 14, 2026 (MLN): Gulistan Textile Mills Ltd (PSX:GUTM) is selling all its assets under a court-sanctioned scheme of arrangement to settle its liabilities to secured creditors, and does not currently envisage starting or resuming commercial production or business operations.

The quarterly report shows the company remained non-operational during the quarter, with no commercial production or business operations carried out and no material change in its operational status from the previous quarter.

The scheme was made under Section 279 of the Companies Act, 2017 and sanctioned by the Sindh High Court at Karachi.

Before the court’s sanction, the secured creditors and shareholders approved it at meetings held under a chairman appointed by the court. It covers the sale of all of the company’s assets to settle its existing liabilities.

The scheme is being implemented in line with its terms.

The Asset Sale Committee constituted under the scheme is selling the assets, and the Agent Bank is distributing the proceeds among the secured creditors on a pari passu basis as full and final settlement of the company’s financial obligations. Once the sale is complete, the company will have no assets.

No measures could be taken during the quarter to start or resume commercial production or business operations.

The company will, however, evaluate strategic options for the future, subject to regulatory approvals and the availability of resources.

The aforementioned information was disseminated through a notification to Exchange.

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