Karachi: Cordoba Logistics and Ventures Limited has disclosed significant decisions from its Extraordinary General Meeting (EOGM) held on August 27, 2024, involving major corporate restructuring and financial adjustments.

During the meeting, shareholders confirmed and adopted the minutes from the previous Annual General Meeting held on October 27, 2023. The EOGM then progressed to address special business matters crucial for the company's financial strategy. A pivotal resolution was passed to amend a loan agreement originally signed on September 28, 2023, with Cordoba Financial Services Ltd. (formerly Cordoba Leasing Limited), known as CFS. This amendment primarily allows for the conversion of a substantial loan into equity. The specifics of the agreement include converting a principal amount of Rs. 113.4 million into equity shares priced at Rs. 10 each.

According to information available from the Pakistan Stock Exchange (PSX), this strategic move is set to defer the repayment of accrued markup and other related financial liabilities until July 2025, providing the subsidiary, CFS, an option for early repayment.

Further, the EOGM authorized an equity investment of up to Rs. 113.4 million in CFS, in one or more tranches as determined by the Board of Directors. This decision aligns with the provisions of Section 199 of the Companies Act, 2017, indicating a significant restructuring within the company's financial and operational framework.

The resolutions also reasserted the authority of the Chief Executive and Company Secretary to execute all necessary actions to implement these changes effectively.