Karachi: Azgard Nine Limited has announced that the agent banks involved in the Creditors' Scheme of Arrangement have approached the Lahore High Court (LHC) to expedite the completion of a pending transaction related to the sale of the Muzaffargarh Unit. The legal move comes after the successful bidder failed to fulfill their obligation of paying the remaining sale consideration, as outlined in previous agreements.

The application, filed by the agent banks, seeks the LHC's intervention to enforce the payment of the outstanding sale consideration. The banks have requested that the court provide a short, fixed period for the successful bidder to rectify the default. Should the bidder fail to comply, the banks have asked the court to terminate the transaction and authorize a refund of any payments made. This would subsequently allow them to initiate a new bidding process for the Muzaffargarh Unit.

This legal strategy is being pursued under the guidance of Ahmed & Qazi, the creditors' legal counsel. It aims to secure either the full payment of the current transaction or initiate a rebidding process exclusively for upfront payment bids, excluding any offers involving deferred payments.

According to information available from the Pakistan Stock Exchange (PSX), Azgard Nine Limited has been actively communicating developments regarding the Creditors' Scheme of Arrangement and the sale of land associated with the Muzaffargarh Unit. These communications have been in compliance with Section 96 of the Securities Act, 2015, and Clause 5.6.1 of the Rule Book of the Exchange.

The Muzaffargarh Unit, including all its plant, equipment, and installations, is part of a broader strategy to address financial obligations. The deadline for the complete transaction is set for June 30, 2025. The outcome of the legal proceedings at the LHC will significantly impact the financial strategy and future operations of Azgard Nine Limited in this designated market category.