KARACHI:
Dost Steels Limited has signed a debt restructuring agreement with a consortium of banks after securing a major investment of Rs2.08 billion from two private investors, Mr. Muhabbat Khan and Mr. Zahir Khan. The development was disclosed in a filing to the Pakistan Stock Exchange (PSX) on Thursday.
According to the disclosure, the two investors have not only committed the full amount in financial backing but have also issued personal guarantees to the lending banks, a move that helped unlock the restructuring deal. Under the agreed terms, the company will repay the restructured bank debt in sixteen quarterly installments — effectively over a four-year period.
As part of the initial steps in executing the restructuring plan, Mr. Muhabbat Khan has already deposited Rs50 million with the consortium banks as a down payment.
Dost Steels, listed on the PSX under the ticker DSL, has faced long-standing financial challenges in recent years due to an adverse operating environment, sectoral pressures, and high borrowing costs. The restructuring deal, backed by fresh investor capital and personal guarantees, provides a lifeline for the company to stabilise operations and improve its financial footing. The development marks a notable step toward resolution of the company’s outstanding debt obligations.
