February 07, 2022 (MLN): The Board of Directors of Zahur Cotton Mills Limited (ZHCM), in a meeting held February 07, 2022, has reviewed and approved the business revival plan, the company’s filing on PSX said.
The business revival operations will include but not be limited to warehousing, logistics and supply chain management, etc.
The board has also authorized the management to make appropriate alterations in the principle line of business, including amendment in Memorandum & Articles of Association of the Company if required, subject to necessary approval of members and other corporate formalities as the case may be.
Furthermore, the company’s BOD has decided to withdraw the earlier application sent to PSX/SECP for the company’s voluntary delisting.
On approval of the new revival plan, the board also analyzed an option of disposal of the company’s assets located at Multan Road, Pul Jaurian, Akhtarabad, Okara, comprising of freehold land, building on freehold land and plant and machinery (“Assets”), the option of disposing of the company factory land, building and machinery (Factory Land).
The board unanimously approved the disposal of Assets under the powers conferred to the board by the relevant provisions of section 183 of the Companies Act, 2017 “Act”.
The consideration of the disposal of assets will be used to redeem/settle the long-term outstanding liabilities of the Company. Resultantly, it will clean up un-used / unnecessary/long outstanding dues and make the company’s financials more promising and lucrative for the new potential investor (s).
The board also recommended holding an Extra-Ordinary General Meeting (EOGM) of the company to seek approval of members for the (i) approval of the revival plan, (ii) disposal of Assets, (iii) amendment in Memorandum and Articles of Association as the case may be, in addition to the powers already conferred to the Board under section 183 of the Act.
The management also presented to the board a proposal received for a potential merger with an ITANZ Technology (Private) Limited (IT Company), the option if availed will speed up the company’s business revival. The board authorized the management to conduct the necessary evaluation/analysis of the proposal with the help of independent experts, legal advisors and consultants as may be required.
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