Pakistan Hotels Developers files plea as winding-up remains incomplete

The winding-up process of Pakistan Hotel Developers Limited has hit another roadblock amid the company’s ongoing litigation and recovery of amounts.

The listed company disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.

The company said that its liquidators filed an application, JCM No. 38 of 2026, before the High Court of Sindh on June 27, 2026, under Sections 381 and 386 of the Companies Act, 2017, seeking continuation of the voluntary winding-up proceedings under the supervision of the court.

The company said that following the commencement of its voluntary winding-up, the liquidators had earlier sought an extension after the initial one-year period expired in December 2025. The High Court had granted a 180-day extension under Section 372 of the Companies Act, extending the deadline for completion of the liquidation process until June 29, 2026.

“However, despite the liquidators having conducted the winding-up proceedings diligently and in accordance with the procedure prescribed under applicable laws, the same could not be concluded due to the pendency of legal proceedings and matters which directly affect the completion of the liquidation process, including pending litigation matters and recovery of amounts due to the company.

“The company, through its liquidators, has now filed an application bearing JCM No. 38 of 2026 under Sections 381 and 386 of the Companies Act, 2017, before the High Court of Sindh at Karachi on June 27, 2026, seeking continuation of the voluntary winding-up proceedings of the company subject to the supervision of the court,” it added.

The said application was allowed by the High Court of Sindh and an extension of 180 days, i.e. until June 29, 2026, was granted.

PHDL was incorporated in 1979 as a private limited company under the name Taj Mahal Hotels Limited, later converting to a public limited company in 1981. Historically, its principal activity was the hotel business, owning and operating the five-star Regent Plaza Hotel and Convention Centre in Karachi.

The company entered into a sale agreement for the transfer of its property, the Regent Plaza Hotel and Convention Centre, to SIUT Trust. SIUT Trust initially expressed interest in purchasing the hotel for Rs14.5 billion (approximately $52 million) in October 2023. The title and possession of Regent Plaza were transferred to SIUT Trust in July 2024, following a 90% payment of the sale value ($46.8 million) on July 1, 2024.

After receiving the full payment of Rs14.5 billion in July 2024, PHDL closed its operations on July 19, 2024. Subsequently, the company’s Board of Directors approved a declaration of solvency, paving the way for its voluntary winding-up.