AUGAF
  • Home
  • Politics
  • Business
  • National
  • News
  • Finance
  • Technology
  • Sports
  • International
  • CommoditiesNew
  • Contact
No Result
View All Result
PSX
Currencies
  • Home
  • Politics
  • Business
  • National
  • News
  • Finance
  • Technology
  • Sports
  • International
  • CommoditiesNew
  • Contact
No Result
View All Result
AUGAF
No Result
View All Result
Home Business

HASCOL considering another right issue with Vitol and Banks help

HASCOL considering another right issue with Vitol and Banks help

admin-augaf by admin-augaf
December 6, 2021
in Business, International
Reading Time: 2 mins read
0
HASCOL considering another right issue with Vitol and Banks help

HASCOL considering another right issue with Vitol and Banks help

Share on FacebookShare on TwitterWhatsapp

Karachi November, 06, 2021: HASCOL has submitted a proposal for the settlement of the debt and circulated it to the various banks, the company has chalked out a detailed strategy in this regard. Total residual debt is Rs54.5 billion, out of which up to Rs9 billion will be provided by two banks jointly, marked as active working capital facility that will be carved out for operations of the company, the company said in the proposal document reported The News.

The remaining debt of Rs45.5 billion would be reduced by 15 percent i.e. Rs6.8 billion through a debt-equity swap to be offered to all remaining debt participants in proportion of their share, the document said. The unsubscribed portion would be offered to other lenders or would remain part of the residual debt, suggested the financial restructuring plan.

Under this plan, it has been proposed that right shares worth Rs8 billion would be issued by Hascol to inject fresh equity into the company. The document added that the resulting proceeds would be used to reduce the remaining debt of those participating Term Lenders that would agree to reinstate their working capital limits to the extent of their adjusted amount. Under the offer, Vitol would continue to provide minimum $12 million Open Credit facility and $15 million Hold Cover on Vitol purchases.


The company also proposed that payment of LC (letter of credit) term for the bank and Vitol facility would be the same as 60 days, whereas Vitol Dubai would maintain minimum shareholding of 40 percent in Hascol until at least 50 percent of the Residual Debt was repaid. Vitol, as a supplier would also support any shortfall in working capital until December 2026 and 40 percent of the Residual Debt repaid would be ploughed back upon each repayment into the working capital facility, to be regarded as incremental LC facility, the document said.

All product procurement would be done transparently on an arm’s length basis via tendering process, the proposal said, adding that however, award of shipments would always be subject to Vitol’s Last Right of Refusal (Vitol has the right to match the lowest offered price and supply the tendered oil) as agreed in the existing Supply Agreement between Vitol and Hascol.

Under this proposal, Hascol would sell its lube plant and three Port Qasim plots of land in 2022, while the sale proceeds would be injected in the company. The lube plant and underlying property has been estimated at a value of Rs1.5 billion by the company; however, valuation was yet to be conducted. Nevertheless, value of three plots at Port Qasim is estimated to be Rs1.309 billion.

Hascol suffered significant losses in 2019, which were then declared in the company’s financial statements. These losses were mainly related to foreign exchange and interest rate risk and extreme volatility in international oil prices, which affected Pakistan’s oil marketing industry.



Related Posts

State Bank To Hold Another Monetary Policy This Year As It Increase The Number Of Meetings In a Year

Mughal Steel Has Successfully Completed BMR Of Girder Re-Rolling Mill: PSX

IBEX up 10 percent after announcement of New FinTech CX Solution Suite

Lotchem Announced Big Dividend With Outstanding Results: PSX


Tags: CovidfinanceHASCOLImran KhanPakistanpakistan stock exchangePakistan Tahreek InsaafSBPVITOL
admin-augaf

admin-augaf

Related Posts

Rebar futures gain 4.3 percent on oil spike, ambitious economic forecast
Business

Rebar Prices Top PKR 3 Lac for the First Time in Pakistan

February 5, 2023
A model of oil barrels is seen in front of Russian and Indian flags in this illustration taken, December 9, 2022. AUGAF/REUTERS/Dado Ruvic/Illustration/File Photo
Business

Indian Refiners Pay Traders in Dirhams for Russian Oil – Reuters

February 5, 2023
Saudi Arabia's Minister of Energy Prince Abdulaziz bin Salman Al-Saud speaks at the Future Investment Initiative conference, in Riyadh, Saudi Arabia, October 25, 2022. AUGAF/REUTERS/ Ahmed Yosri
Business

Saudi Energy Minister Warns Sanctions Could Result in Energy Shortages

February 5, 2023

Recent News

Rebar futures gain 4.3 percent on oil spike, ambitious economic forecast

Rebar Prices Top PKR 3 Lac for the First Time in Pakistan

February 5, 2023
The suspected Chinese spy balloon drifts to the ocean after being shot down off the coast in Surfside Beach, South Carolina, U.S. February 4, 2023. AUGAF/REUTERS/Randall Hill

U.S. Fighter Jet Shoots Down Suspected Chinese Spy Balloon

February 5, 2023
Pakistan Former President Pervez Musharraf Passed Away

Pakistan Former President Pervez Musharraf Passed Away

February 5, 2023
A model of oil barrels is seen in front of Russian and Indian flags in this illustration taken, December 9, 2022. AUGAF/REUTERS/Dado Ruvic/Illustration/File Photo

Indian Refiners Pay Traders in Dirhams for Russian Oil – Reuters

February 5, 2023
Saudi Arabia's Minister of Energy Prince Abdulaziz bin Salman Al-Saud speaks at the Future Investment Initiative conference, in Riyadh, Saudi Arabia, October 25, 2022. AUGAF/REUTERS/ Ahmed Yosri

Saudi Energy Minister Warns Sanctions Could Result in Energy Shortages

February 5, 2023

Popular News

  • Central Directorate of National Savings

    President Prohibit National Savings For Changing Rates on Existing Certificates Retrospectively

    0 shares
    Share 0 Tweet 0
  • Pakistan Rupee Appreciate against Dollar in Interbank as IMF Confirmed Board Review Date

    0 shares
    Share 0 Tweet 0
  • Pakistan Rupee Fall After 13 Days of Successive Gains against Dollar on Lower Remittances and Strengthening of US Dollar

    0 shares
    Share 0 Tweet 0
  • Pakistan Central Bank Issued Show Cause Notice to Eight Banks Over Currency Speculation

    0 shares
    Share 0 Tweet 0
  • Pakistan Rupee Fall for the Straight Second Day Against Dollar on Opening of LCs

    0 shares
    Share 0 Tweet 0

Categories

  • Budget
  • Business
  • Culture
  • Finance
  • International
  • National
  • News
  • Politics
  • PTI
  • Sports
  • Technology
AUGAF Logo

Follow us on social media:

Recent News

  • Rebar Prices Top PKR 3 Lac for the First Time in Pakistan
  • U.S. Fighter Jet Shoots Down Suspected Chinese Spy Balloon
  • Pakistan Former President Pervez Musharraf Passed Away

Category

  • Budget
  • Business
  • Culture
  • Finance
  • International
  • National
  • News
  • Politics
  • PTI
  • Sports
  • Technology

Recent News

Rebar futures gain 4.3 percent on oil spike, ambitious economic forecast

Rebar Prices Top PKR 3 Lac for the First Time in Pakistan

February 5, 2023
The suspected Chinese spy balloon drifts to the ocean after being shot down off the coast in Surfside Beach, South Carolina, U.S. February 4, 2023. AUGAF/REUTERS/Randall Hill

U.S. Fighter Jet Shoots Down Suspected Chinese Spy Balloon

February 5, 2023
  • Home
  • Politics
  • News
  • Business
  • National
  • Finance
  • Technology
  • International

© 2021 AUGAF.

No Result
View All Result
  • Home
  • Politics
  • Business
  • National
  • News
  • Finance
  • Technology
  • Sports
  • International
  • Commodities
  • Contact

© 2021 AUGAF.