LAHORE: Azgard Nine Limited announced on July 2, 2026, that it has encountered significant legal hurdles in the ongoing sale of its Muzaffargarh Unit. This development follows a recent order from the Lahore High Court, which grants the Agent Banks the authority to take legal action against the bidder involved in the transaction.

According to a statement from the company, the court's ruling allows the banks to terminate the current bid and invite new proposals. The Agent Banks, facing these legal complications, have decided to extend the deadline for the sale under the Creditors' Scheme of Arrangement until December 31, 2026.

The decision to prolong the deadline underscores the complexities surrounding the disposal of the Muzaffargarh Unit. The company has been in continuous communication regarding the Creditors' Scheme and remains committed to complying with all legal and regulatory obligations.

According to information available from the Pakistan Stock Exchange (PSX), Azgard Nine is navigating a challenging market environment as it seeks to finalize the unit's sale. The extension indicates the company's intent to ensure transparency and due process in the transaction, reflecting the legal and financial intricacies involved.

While the company did not provide additional details on potential new bidders or the financial aspects of the transaction, the decision marks a significant step in the ongoing process. Azgard Nine's adherence to the Securities Act, 2015, and the PSX's Rule Book remains a focal point as the situation unfolds.