Amreli Steels Limited (ASTL) said on Wednesday that it had received approval to renegotiate and adjust the repayment terms of its loans worth Rs22.6 billion, which the company borrowed from several banks and financial institutions.
The steel maker shared the development in a notice to the Pakistan Stock Exchange (PSX) today.
“The Board of Directors also approved the terms and conditions of the restructured facilities by means of a term sheet, the Master Restructuring Agreement (MRA), the Master Collection Agreement, and related ancillary documentation that is being agreed upon between the company and the financiers,” the notice to the bourse read.
The listed company also shared the contours of the financial restructuring:
- All restructured facilities, including principal and mark-up/profit, are deferred for 3 years (“Moratorium Period”) except for pre-existing long-term facilities where principal payment is deferred for 2 years. The restructuring tenor is 10 years from the effective date (i.e. 01 July 2024).
- Existing short-term facilities of approximately Rs7.5 billion (conventional) and Rs3.5 billion (Islamic) will be converted into long-term facilities and folded into the restructured stack.
- The mark-up rate will be fixed at KIBOR, with no additional spread, for the entire tenor and amount of the restructuring agreement.
- Liquidity commitment by the Sponsors of PKR 4 billion via equity injection and sale of non-core company assets to help generate further working capital financing.
Amreli Steels Limited was incorporated in Pakistan as a private limited company in 1984 and was converted into a public company in 2009.
The principal activity of ASTL is the manufacturing and sale of steel bars and billets.
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