Karachi: Paramount Spinning Mills Ltd, once a key player in the textile industry, has confirmed its non-operational status following the completion of a legally sanctioned Scheme of Arrangement. This announcement was made in response to a query from the Pakistan Stock Exchange (PSX), dated July 2, 2026.

The company revealed that the Scheme of Arrangement was approved under Section 279 of the Companies Act, 2017, by the High Court of Sindh at Karachi. According to the terms of the scheme, the company held meetings with secured creditors and shareholders under the supervision of a court-appointed chairperson. These discussions led to the approval of asset sales to settle existing liabilities.

According to information available from the Pakistan Stock Exchange (PSX), Paramount Spinning Mills sold all its assets through an Asset Sale Committee. The proceeds from these sales were distributed by the Agent Bank to secured creditors on a pari passu basis, effectively settling all outstanding debts. Consequently, the company is left without operational assets and has ceased its operational activities.

Despite the current circumstances, Paramount Spinning Mills is in the preliminary stages of exploring strategic options for its future. These plans are contingent upon obtaining the necessary regulatory approvals and securing adequate resources.

The company has submitted its Quarterly Progress Report for the quarter ending June 30, 2026, through PUCARS. This report confirms the company's non-operational status. Paramount Spinning Mills has assured stakeholders that future quarterly progress reports will be submitted within the timelines prescribed by PSX Regulation 5.11.1(b).

As of now, the company remains in a state of limbo, as it navigates the complexities of its non-operational status while evaluating potential pathways forward.