The Privatisation Commission Board has accepted Azgard-9's request for extension in Pak American Fertiliser Limited (PAFL) payment deadline till July 15, and referred the case to the Cabinet Committee on Privatisation (CCoP) for endorsement.
Sources said that the PC Board, which met here on June 16, took the request for extension in PAFL and accepted it. The Board was of the view that Azgard-9 was serious to pay the remaining bid money within extended period and instead re-biding it will be wise to accept the request.
The sources added Azgard-9 has revised its request with a specific offer to pay the commission the interest at the banks mark-up rate for extended period if it was given extra time for the payment.
Azgard-9 had defaulted on payment for PAFL on June 4. Later on, it approached the PC for extension in the payment schedule till July 15.
Earlier on June 13, the Board had discussed PAFL case and deferred it for the next meeting. The Board members had come with different views on the case.
PC Board wanted to know from the Azgard-led consortium as if it has made any arrangement with any bank to raise money for upfront payment of 75 percent of bid money amounting to roughly Rs 12 billion.
In the last meeting, majority of the members favoured for grant of more time to Azgard-9 and later referred the case to CCoP for endorsement.
The sources said the question of PAFL payment in installments does not arise as it was neither demanded nor discussed at any level.
They said that while giving a go ahead for issuing Letter of Acceptance (LoA) to Azgard-9, the CCoP had given direction to PC Board that in the case of default it should be approached for further guidance and the same line of action will be followed. The sources said the CCoP direction has put a bar on PC to offer PAFL case to third party.
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