Karachi: Gulshan Spinning Mills Ltd, a non-operational entity, has announced the progress of its court-sanctioned Scheme of Arrangement, according to an announcement made on July 14, 2026. This development follows the High Court of Sindh at Karachi's approval, as facilitated by secured creditors and shareholders in meetings overseen by a court-appointed chairman.

The Scheme of Arrangement is governed under Section 279 of the Companies Act, 2017, which outlines the sale of all company assets to settle existing liabilities. The Asset Sale Committee, responsible for supervising the sale process, is actively executing the divestment of the company's assets. Proceeds from these sales are being distributed among the secured creditors on a pari passu basis by an Agent Bank, effectively leaving the company without any assets.

According to information available from the Pakistan Stock Exchange (PSX), the company remains non-operational, with no steps taken towards resuming commercial production or business operations during the quarter ending June 30, 2026. The company has committed to submitting quarterly progress reports in compliance with PSX Regulation 5.11.1(b), reflecting its ongoing non-operational status and adherence to stipulated timelines.

The Asset Sale Committee's activities are aligned with the Scheme's terms, ensuring that the liquidation process satisfies the liabilities to secured creditors. The company's current trajectory suggests a continued focus on asset liquidation and liability settlement, with no indication of resuming operational activities in the near future.