ISLAMABAD: Two significant milestones were achieved in the restructuring of the Pakistan International Airlines Corporation Limited (PIACL) on 20th and 21st April 2024 as the shareholders and creditors Scheme of Arrangement filed with the Securities and Exchange Commission of Pakistan (SECP).
As a part of the privatisation process, the federal cabinet approved legal segregation and restructuring of the PIACL, following which a Scheme of Arrangement (SoA) was filed in SECP on 28th March 2024.
As a regulatory requirement by the SECP to restructure the PIACL, the SoA was required to be approved by the shareholders and creditors of the PIACL.
The blueprint of the restructuring was presented to the shareholders of the PIACL during the extraordinary general meeting held on 20th April 2024, which was overwhelmingly approved by the shareholders with 99.97 per cent votes cast in favour.
Likewise, in the creditor’s meeting of the PIACL creditors held on 21st April 2024, the restructuring plan and SoA were endorsed by the creditors.
Thus, satisfying two major requirements for the processing of the SoA by the SECP.
The restructuring will deliver a significantly debt-lite PIA, with better cash flows, focused on aviation and providing a foundation for future growth to potential investors, while ensuring value creation for shareholders.
Copyright Business Recorder, 2024
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