Amreli Steels Limited (ASTL) announced on Wednesday that it has received approval to renegotiate the repayment terms of loans totaling Rs 22.6 billion, borrowed from various banks and financial institutions.
The company disclosed the development in a notice to the Pakistan Stock Exchange (PSX), confirming that the Board of Directors approved the restructuring terms through several agreements, including the Master Restructuring Agreement (MRA) and ancillary documents.
Under the restructuring plan, all restructured facilities, including principal and mark-up, will be deferred for three years (Moratorium Period), except for pre-existing long-term facilities, where principal payments are deferred for two years. The restructuring will have a tenor of 10 years starting from July 1, 2024.
Additionally, approximately Rs 7.5 billion of conventional short-term facilities and Rs 3.5 billion of Islamic short-term facilities will be converted into long-term facilities. The mark-up rate for the entire restructuring period will be fixed at KIBOR, with no additional spread.
To support the restructuring, Amreli Steels’ sponsors have committed PKR 4 billion through an equity injection and the sale of non-core assets to generate additional working capital financing.
Amreli Steels, founded in 1984 and converted into a public company in 2009, primarily manufactures and sells steel bars and billets.
