Lahore July 6 2022: Lahore High Court approves issuance of preference shares and privately placed debt for clearance of outstanding liabilities of Agritech Limited (AGL) for an amount Rs 25 billion.
The authorized capital of the Company is Rs. 15 billion whereas its liability towards the creditors as of 31.12.2013 is approximately Rs.25 billion.
The total long-term liabilities of the Petitioner towards the creditors as on 31.12.2013 (unaudited) under the head of principal is Rs. 19.447 billion and accrued markup is 6.075 billion.
The total current outstanding principal amount is Rs.19.447 billion for which there is an agreement between 100% creditors and the Petitioner or conversion of this liability into equity by issuing preference shares.
As regards the amount of mark-up that has accrued on the loans availed by the Petitioner, the Scheme offers various options to the creditors including the conversion of the same also into equity by issuing preference shares. The unsubscribed capital of the Petitioner is clearly insufficient to cater for the increase in the capital which shall result from issuance of the preference shares. With the sanction of the Scheme of Arrangement, the capital of the Petitioner shall automatically be deemed to have correspondingly been increased.
The salient features of the Scheme of Arrangement are as follows.
(i) The issuance of preference shares by the petitioner to its creditors in lieu of the outstanding principal amount of Rs.19.447 billion .
(ii) The overdue mark-up as on 31.12.2013 is proposed to be settled/restructured in terms of clause 11 read with Schedule F of the Scheme of Arrangement where under the creditors of the petitioner settlement/restructuring of the mark-up amount.
(iii) The Scheme of Arrangement also proposes the release of security interests over the immovable properties of Agritech Limited (unless the same have already been released by the creditors) for their sale or lease, as the case may be, for utilizing the funds thereof for indebtedness of the Petitioner as the Scheme provided for in clause 12 of Arrangement.
