Hascol’s worst problems are behind it, says chief as company announces steps to restructure Rs54bn debt
- We are making excellent progress with our banks and are grateful to them for their cooperation: Sir Alan Duncan
Chairman Hascol Petroleum Limited Sir Alan Duncan expressed confidence over the company’s future after the OMC announced further steps towards restructuring its debts of Rs54 billion.
As per a press statement released on Tuesday, Hascol Petroleum approved further details towards restructuring its debts with its bankers at its board meeting held on March 13, and approved a business model “which sets it on a strong path to being successful in the future”.
“We are making excellent progress with our banks and are grateful to them for their cooperation,” said Duncan.
“We are confident that Hascol’s worst problems are behind it, and that the future for the company is beginning to look a lot brighter,” he added.
Hascol board approves modified scheme of arrangement as it looks to deal with debts
As per Hascol’s statement, the company’s board on Monday approved certain amendments to the Scheme of Arrangement which have been agreed in principle with most of its banks.
“The company will reconvene the creditors’ meeting planned to take place during April to present the modified scheme to its secured creditors for the necessary approval. Thereafter it will be submitted to the High Court and, if it is agreed under the legal process required, it will bind the company and its bankers into a new financial structure,” read the statement.
The company added that it has been in negotiation with all its lenders to restructure its entire debt of Rs54 billion and has designed a restructuring scheme which will entail the settlement of the entire debt.
“The restructuring is aimed to ensure the company’s survival,” said the company.
Alleged Rs54 billion scam
Last year in January, the Federal Investigation Agency (FIA) arrested Mumtaz Hasan, founder of Hascol Petroleum Limited, as part of its investigation into an alleged Rs54-billion scam.
“The FIA Commercial Banking Circle has registered a case against 30 suspects – including former and current officers of the National Bank of Pakistan and Hascol – and one suspect has been arrested after pieces of evidence came to light in an inquiry into bank default, financial fraud and money laundering of more than Rs54 billion by the Hascol Petroleum Company,” read a FIA statement back then.
Last month, as many as 16 officials of the National Bank of Pakistan (NBP) and petroleum companies, etc., were placed in judicial custody for their alleged involvement in the Rs54 billion ‘biggest financial scam’ after a Special Banking Court rejected their interim bails on February 20, 2023.
Earlier, Hascol’s board authorised Chief Financial Officer Amad Uddin to exercise authority as Chief Executive Officer (CEO) after the trial judge refused confirmation of bail applications of CEO Aqeel Ahmed Khan along with others.