LAHORE: Diamond Industries Limited (DIL) on Thursday said it had settled liabilities amounting to Rs352.166 million with Allied Bank Limited and Rs137,297,971 as a principal amount which had been paid to the bank.
In a notification sent to the stock notification, DIL stated that the cost of funds and other payables had been waived off by the bank.
The balancing amount of Rs214,868 million according to DIL would positively impact its equity and will be accounted for in the current accounting year and resultantly will convert equity into positive by Rs82.319 million, read the notification.
It added “It may further be noted that the bank has confirmed that there is no further liability payable to the Bank and withdrawn all sorts of liens, entitlements, possessions. claims and encumbrances on the assets of the company.”
“In post-settlement phase, the bank has issued clearance certificates to the company along with No. Objection Certificates (NOC) in respect of all the mortgage properties and charge on filed with the office of Securities Exchange Commission of Pakistan.
In addition. the authorized representatives of the company and the bank have also signed joint applications for the withdrawal of all the pending litigation and undertake to avoid initiate further litigation I complaints/ applications against each other at any sort of regulatory authority/office ‘forum in respect of closed matters,” read the notification.
Diamond Industries said it was hopeful after the settlement of longstanding pending obligations with Allied Bank Limited, it would be able to resume its core business activities in the near future.
Its shares were trading at Rs24.64, down Rs0.49 (-1.95 percent) and KSE-100 index was trading at 42,081.32 points, down 219.88 points (-0.52 percent) from close on Wednesday.