Embattled long-products maker Dost Steel Limited (PSX: DSL) has clinched a debt-workout deal with its banking syndicate after securing a Rs2.08 billion equity injection from two private investors, Muhabbat Khan and Zahir Khan.
A notice to the Pakistan Stock Exchange says the fresh capital, backed by the pair’s personal guarantees, unlocks a four-year repayment plan under which Dost Steel will discharge the restructured bank facilities in sixteen quarterly instalments. The new backers have already lodged an initial Rs50 million down-payment with the consortium, signalling that the agreement is now live.
The accord removes an existential cloud that has hung over the company since late 2022, when surging finance costs and erratic scrap prices pushed it to the brink of default. Dost Steel hopes the lighter debt service will free enough cash to keep its 350-ktpa Phool Nagar bar mill running while it completes a long-delayed rights issue. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
