August 24, 2022 (MLN): The Board of Directors (BoDs) of Hascol Petroleum Limited (PSX: HASCOL) on Tuesday approved the “Rehabilitation Plan” through restructuring and settlement of liabilities of the company as per the proposal prepared by the management, the company filing on PSX showed today.
The board has also approved the draft of the letter to be sent to all secured creditors/banks/ financial institutions conveying the Rehabilitation Plan and the process intended to be followed by the company for implementing the same i.e., through a Scheme of Arrangement to be presented to the High Court of Sindh at Karachi.
Furthermore, the board has given the management a go-ahead to prepare the scheme on the basis of the Rehabilitation Plan in consultation with the transaction legal counsel and auditors/accountants engaged by the company for such purpose and present the same for approval of the board for submission before the relevant competent court.
The scheme is, however, subject to its approval by the creditors and shareholders and sanction of the competent court as per the requirement of the relevant law and requisite approvals to be obtained from competent authorities.
To note, Hascol also announced its annual results for the year ended on December 31, 2021 yesterday as per which the company managed to earn a positive EBITDA of Rs1.35 billion compared to the previous year's negative EBITDA of Rs11.77bn.
Despite the non-availability of working capital lines from banks, the credit support from the company's single majority shareholder, Vitol, has played a vital role in this achievement.
At present, the scrip of the company is being traded at Rs7.11, up by 17paisa or 2.45% DoD.
