FFC secures shareholders' nod for $3.5m Pari Passu charge on fixed assets

November 27, 2023 (MLN): The shareholders of Fauji Fertilizer Company Limited (PSX: FFC) have granted authorization for the company to establish a pari passu charge on its fixed assets, with a maximum amount (inclusive of margin) of $3.5 million or its PKR equivalent, FFC’s filing on local bourse revealed today.

The aforementioned agenda was approved by the shareholders during their Extraordinary General Meeting (EOGM) held on November 23, 2023.

This charge is in favor of TEL's lenders (or their agent) for a period of 10 years or such longer duration as the liabilities/obligations of the Sponsors remain undischarged.

This security serves to support the Standby Letter of Credit under TEL's Power Purchase Agreement (PPA SBLC).

“The company be and is hereby authorized to do all such other acts, deeds, and things as may be necessary and/or expedient for the aforesaid purpose.,” the notice reads.

Additionally, and in furtherance thereof, this includes, without limitation, the authority to enter into, deliver, and implement any and all agreements, instruments, powers of attorney, notices, certificates, and documents.

The shareholders have further authorized the Managing Director, Chief Executive Officer, Chief Financial Officer, and the Company Secretary to take any and all necessary steps and actions for implementing the above resolutions.

This involves documenting the company's investments in TEL in the associated companies register at the registered office.

"If the company seal is used, it will be affixed by the Managing Director & Chief Executive Officer for execution," it added.

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