Pakistan’s rebar producer, Dost Steels Limited (DCL) faces continued closure of operations amid pending litigation, according to the company’s progress report.
Despite management’s efforts to find a resolution and restart commercial production, the ongoing legal dispute with Crescent Star Insurance Limited (CSIL) has prevented progress.
The company has been actively seeking a new investor group to join its management and facilitate the resumption of commercial production. However, the approval from the Securities and Exchange Commission of Pakistan (SECP) is required, and an application was submitted on April 15, 2022. Unfortunately, CSIL has submitted certain comments to the SECP, leading to a delay in the processing of the company’s application, DCL said.
The litigation between CSIL and DCL is also being addressed in the Lahore High Court as part of the efforts to reach a settlement. The company intends to present a resolution proposal to the SECP in the upcoming weeks, aiming for an amicable resolution in the near future.
The SECP has advised DCL to resolve all pending litigations with CSIL before considering the company’s application. DCL remains optimistic that, once the SECP approval is obtained, the investor group associated with the company can resume commercial production, thereby removing the company from the default counter at the Pakistan Stock Exchange (PSX).
DCL’s annual rebar production capacity stands at 350,000 tons, and the rolling mill was supplied by Siemens-VAI/Primetals. The company has been facing financial troubles since 2019, resulting in the production suspension.
