Pakistani rebar producer Dost Steels has signed a restructuring agreement with a consortium of banks as part of efforts to stabilise its financial position.
The deal is backed by a PKR 2.08 bln (USD 7.33 mln) investment from Muhabbat Khan and Zahir Khan, who have also extended personal guarantees for the repayment of the company’s outstanding loans.
According to a filing with the Pakistan Stock Exchange (PSX), the investment will be repaid to the banks in 16 quarterly instalments. As part of the agreement, an initial down payment of PKR 50 mln (USD 176,257) has already been made by Muhabbat Khan.
Dost Steels, which has an annual rebar production capacity of 350,000 tons, has been non-operational since 2019 due to financial challenges. The company’s rolling mill was originally supplied by Siemens-VAI/Primetals.
1 USD / 283.6 PKR