TRG Pakistan Limited, a shareholder in The Resource Group International Limited (TRGI), has announced that its portfolio company, Afiniti Limited, has reached an agreement with senior lenders on a comprehensive balance sheet restructuring plan.
The restructuring is expected to significantly improve Afiniti’s financial position and support its growth in the AI technology industry.
According to the company’s filing at the Pakistan Stock Exchange (PSX), the restructuring plan includes a substantial reduction in Afiniti’s current senior debt along with a multi-year extension of debt maturity.
It also involves the recapitalization of Afiniti’s balance sheet, with senior lenders, preferred shareholders, and management retaining equity interests on a fully diluted basis.
Additionally, the restructuring will reduce cash interest payments, with extra financing enabling Afiniti to accelerate its growth initiatives.
This restructuring provides significant value and upside potential for TRG Pakistan, whose indirect economic stake in Afiniti will be substantially retained in percentage terms on a fully diluted basis.
The closing of Afiniti’s restructuring is subject to court approval in Bermuda and the United States and is expected to occur before year-end.
