Pakistani rebar producer Dost Steels Limited (DSL) has signed a loan restructuring agreement with a consortium of banks, under which its outstanding debt has been rescheduled, the company said in a filing to the stock exchange.
According to the agreement, a total of PKR 2.08 bln (UDS 7.2 mln), including all future markup, will be repaid in sixteen quarterly installments. A down payment of PKR 50 mln (USD 0.17 mln) has already been made as part of the settlement.
As part of the deal, two private investors, Muhabbat Khan and Zahir Khan, who have provided personal guarantees to the consortium banks, will invest PKR 2.08 bln (USD 7.2 mln) into DSL to facilitate the repayments.
Last month, DSL announced plans to raise PKR 4.45 bln (USD 15.6 mln) through a rights issue to fund the installation of a billet-producing melting furnace and to support working capital.
DSL, which has an annual rebar production capacity of 350,000 tons, has been idle since 2019 due to financial difficulties. The company said it hopes to resume operations following the restructuring, though it did not provide a timeline.
1 USD / 285 PKR
