Karachi: Paramount Spinning Mills Ltd has reported that it remains non-operational following the implementation of a court-approved Scheme of Arrangement, according to a progress report issued on October 14, 2026. The Scheme, sanctioned by the High Court of Sindh at Karachi, involved the sale of all company assets to settle existing liabilities, leaving the company without operational assets.

The Scheme of Arrangement, conducted under Section 279 of the Companies Act, 2017, received approval from both secured creditors and shareholders in meetings overseen by a court-appointed chairperson. These meetings facilitated the sale of all company assets, managed by an Asset Sale Committee, with proceeds distributed by the Agent Bank among secured creditors on a pari passu basis as a comprehensive settlement of the company's financial obligations.

According to information available from the Pakistan Stock Exchange (PSX), the company's status remains unchanged as non-operational, with no commercial production or business activities conducted during the quarter ending September 30, 2026. The report indicates no significant changes in the company's operational status compared to previous quarters.

As of the report date, Paramount Spinning Mills Ltd. is in the preliminary stages of evaluating strategic options for its future, contingent upon obtaining necessary regulatory approvals and securing available resources. The company's endeavors to explore potential business resumption remain in the early phases, with strategic evaluation ongoing.

Paramount Spinning Mills Ltd. falls within the designated market category of non-operational entities, as it continues to navigate the aftermath of its asset liquidation process.