Karachi: Gulistan Spinning Mills Ltd, a non-operational entity, has announced the sale of its assets as part of a court-sanctioned Scheme of Arrangement under Section 279 of the Companies Act, 2017. The company disclosed this development in its quarterly progress report, dated July 14, 2026, following a request from the Pakistan Stock Exchange.

According to information available from the Pakistan Stock Exchange (PSX), the scheme had previously gained approval from the company's secured creditors and shareholders in meetings chaired by a court-appointed official. The arrangement involves selling all of Gulistan Spinning Mills' assets to settle existing liabilities. This process is being overseen by an Asset Sale Committee, which has begun the sale proceedings.

The proceeds from the asset sales are being distributed by the Agent Bank among the secured creditors on a pari passu basis. Consequently, Gulistan Spinning Mills will not retain any assets. The company confirmed that during the quarter ending June 30, 2026, no steps were taken towards resuming commercial production or business operations, maintaining its status as a non-operational entity.

Despite these changes, the company assured stakeholders of its compliance with regulatory requirements, committing to submit quarterly progress reports within the prescribed timelines as per PSX Regulation 5.11.1(b). The submission of the current progress report further underscores Gulistan Spinning Mills' adherence to these directives.