Dost Steels awaits resolution of pending issues for resumption of commercial production

April 05, 2023 (MLN): The management of Dost Steels Limited (PSX: DSL) is still awaiting the resolution of pending issues in order to resume commercial production, the progress report of the company issued revealed today.

The company has been actively seeking a new investor group to join its management and restart operations, it added.

However, certain obstacles, including pending litigations and comments filed by Crescent Star Insurance Limited (CSIL), have resulted in a delay in obtaining permission from the Securities and Exchange Commission of Pakistan (SECP).

The company submitted an application to SECP on April 15, 2022, seeking permission for the new investor group to join its management. However, SECP has advised DSL to resolve all the pending issues, including litigations with CSIL, before considering its application.

The management of DSL has been making efforts to coordinate the resolution of these issues in parallel with the new investor group and CSIL.

Despite facing a challenging economic and foreign exchange situation in the country, with steel producers unable to import scrap resulting in a shortage of scrap in the market, DSL remained hopeful of finding an amicable solution.

The company anticipated reaching a reasonable resolution of the pending issues and resuming commercial production once approval from SECP is obtained.

The successful resumption of operations would also result in the company being removed from the default counter at the PSX.

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