ANL faces LHC petition over creditors’ scheme, land

May 27, 2025 (MLN): In a significant development related to the Creditors' Scheme of Arrangement and the sale of land of Azgard Nine Limited (PSX: ANL) associated with the Muzaffargarh Unit, the agent banks representing the creditors have filed an application before the Lahore High Court (LHC).

The sale includes all plant, equipment, and installations on the land until June 30, 2025.

The application has been submitted to the same company Judge who originally approved the Scheme of Arrangement, the company's filing on PSX revealed today.

The agent banks have requested the LHC’s assistance in implementing the Scheme by directing the successful bidder to rectify his default and pay the remaining sale consideration within a short-fixed period.

Failing this, the court has been asked to terminate the transaction, permit the agent banks to refund the paid sale consideration, and conduct a rebidding of the land.

This move, which follows prior communications on the subject, has been undertaken based on legal advice provided by the creditors' legal counsel, Ahmed & Qazi (A&Q).

The expected outcome is that either the creditors will receive the full and final sale consideration under the current transaction soon, or the bid will be cancelled.

In the event of rebidding, A&Q has advised that only upfront payment bids should be invited, and any bids involving deferred payments will not be entertained.

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