Dost Steels' litigation with CSIL holds up operations

July 10, 2023 (MLN): Despite management's efforts to arrive at an amicable solution to restart commercial production at Dost Steels Limited (PSX: DSL), the operations are still closed amid pending litigation with Crescent Star Insurance Limited (PSX: CSIL), the progress report of the company issued today stated.

“The company has been trying to get new Investor group to join the management of the company to restart commercial production, in this regard, SECP permission is needed and an application to SECP has already been given on 15 Apr 2022,” the notice reads.

“However, CSIL had fled certain comments to SECP and the company’s application is pending disposal,” it further states.

In addition, these issues are also under litigation (in Lahore High Court) between CSIL and the company which is also being settled.

Moreover, the SECP will be approached during the coming fortnight with a resolution proposal. The matter is expected to be resolved amicably during the coming weeks.

Thereby, SECP has advised DSL to resolve all the issues including pending litigations with CSIL before the company’s application will be considered.

DSL expressed that the company hopes after the approval from SECP, the group of investors who are with the company can achieve commercial production once again and it will be removed from the default counter at PSX.

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