An application has been filed before the Lahore High Court by agent banks representing the creditors of Azgard Nine Limited (PSX: ANL), seeking enforcement of the Creditors’ Scheme of Arrangement linked to the sale of the company’s Muzaffargarh Unit. The request concerns the sale of land and all associated plant, equipment, and installations located on the premises, with the transaction covering assets up to June 30, 2025.
The filing, disclosed to the Pakistan Stock Exchange on Thursday, has been made before the same company judge who previously sanctioned the court-approved Scheme of Arrangement. The agent banks have approached the court after the successful bidder failed to meet their payment obligations under the agreed sale terms.
Specifically, the banks have asked the court to order the buyer to clear the outstanding sale consideration within a brief, fixed timeframe. Should the default continue, the creditors have sought the court’s permission to terminate the transaction, refund the amount already paid, and initiate a fresh bidding process for the assets.
This action follows prior correspondence between the parties involved and is based on legal guidance from the creditors’ counsel, Ahmed & Qazi. The legal team has advised that the transaction either be completed promptly or cancelled altogether to safeguard creditor interests.
In case of a re-auction, A&Q has recommended that only bids offering full upfront payment be accepted, with no consideration given to proposals involving deferred payment terms. The move is intended to prevent further delays in settlement and ensure a more secure and transparent disposal of the assets under the court-sanctioned arrangement.
