January 28, 2020 (MLN): Paramount Spinning Mills Limited (PASM) via notification to PSX, has requested to hold the de-listing of shares from Pakistan Stock Exchange Limited.
Due to severe financial crunch, the company asked PSX to waive off all penalties and charges keeping in mind of a previous track record of the Company.
To recall, the company was performing well and distributing dividend/bonus regularly. However, due to litigation with Financial Institutions, all the working capital lines were blocked by banks, therefore, the operations of the company gradually stopped and it incurred heavy losses and all the payments are stopped.
With regards to the latest development, Honorable Sindh High Court has approved the captioned Scheme of Arrangement vide judgment dated October 25, 2019. Moreover, the majority of banks have agreed on the term sheet. After restructuring, the stock will be released to the Company which will be in a position to settle all over dues.
