Karachi: TRG Pakistan Limited has disclosed that Afiniti Limited, a part of its portfolio via The Resource Group International Limited (TRGI), has initiated a significant balance sheet restructuring. This strategic move, agreed with its senior lenders, is designed to fortify Afiniti's financial footing and bolster its position in the artificial intelligence technology sector.

The agreement, detailed on September 20, 2024, includes a notable reduction in Afiniti's existing senior debt and extends the maturity of this debt over several years. This restructuring also involves the recapitalization of Afiniti's balance sheet, allowing senior lenders, preferred shareholders—including TRGI—and Afiniti's management to retain considerable equity interests.

Moreover, the restructuring arrangement will significantly lower Afiniti's cash interest payments. This adjustment, coupled with new financing avenues, is set to enhance Afiniti's capacity to accelerate its growth trajectory. According to information available from the Pakistan Stock Exchange (PSX), this development promises substantial value and growth prospects for TRG Pakistan, ensuring that its indirect economic interest in Afiniti remains largely intact in percentage terms on a fully-diluted basis.

The successful completion of this deal is contingent upon court approvals in Bermuda and the United States. The closure of the transaction is anticipated to occur before the end of this year. TRG Pakistan plans to release further details following the official closing of the Afiniti restructuring transaction.