KARACHI: Azgard Nine Limited (PSX: AZGARD9) has announced the distribution of Rs674 million among its creditors following the completion of the sale of the building and machinery of its Muzaffargarh unit. The company disclosed this development to the Pakistan Stock Exchange (PSX) on Thursday, marking a key step in its ongoing financial restructuring process.
The funds were distributed as part of the company’s Creditors’ Scheme of Arrangement, with proceeds from the asset sale being used to settle outstanding obligations. According to the disclosure, the Agent Banks overseeing the scheme confirmed that the funds had been fully received and transferred from an escrow account to creditors, along with accrued profits, after deducting scheme-related expenses.
The total value of the Muzaffargarh assets—comprising machinery, building, and land—was offered at Rs1.42 billion. Of this, Rs713.6 million has already been received and disbursed, with Rs706 million remaining from the sale of land, which has not yet been finalized.
Azgard Nine, which has been restructuring its finances for several years due to debt-related challenges, has been selling non-core assets as part of its plan to streamline operations and reduce long-term liabilities. Further updates on the land sale and subsequent distribution of funds are expected once the transaction is completed.
