Hascol’s debt restructuring expected ‘in next few months’

KARACHI: Troubled oil marketing company Hascol Petroleum Ltd said on Thursday the restructuring of its bank loans will conclude in the “next few months”.

A statement attributed to the company’s chairman, Alan Duncan, said a corporate revival plan is “on track” and will likely lead to the injection of required fresh capital by a potential investor.

Even though the statement didn’t mention the name of the potential investor, the company chairman seems to be referring to Taj Gasoline Ltd, a private oil marketing company operating 61 retail sites in Sindh.

Taj Gasoline submitted a public announcement of intention to buy at least 41 per cent shareholding of Hascol Petroleum in June.

The potential investor will subscribe to new shares by way of fresh equity injection. Subse­quently, the acquirer will buy an undisclosed number of additional shares from minority shareholders of Hascol Petroleum by way of a public offer. Under the prevailing rules, the public offer will be made at a price equal to, or higher than, the rate offered to the majority shareholders.

“The company’s board and management are confident that over the course of the next few months, the company’s liquidity issues will get addressed, which should deliver benefits to all stakeholders in the coming years,” the chairman said.

The company has been in trouble since 2018 partly for making inaccurate entries in its financial accounts.