May 1995. The company is Non-Banking Finance Company (NBFC) which engages in the business of leasing. It had a promising start: it was set up with the help of Merrill Lynch, and the Commonwealth Development group. For a while, the company did well. million respectively. hit. By the company’s own account: “SLCL was one of the leading leasing companies of sector suffered a huge setback. As a result the lines of credit available to SLCL from banks which propelled the company's entire operations, were suddenly choked, and the process of recovery of leases from the lessees also became much slower day by day.” One can see this in the income and - Clearly, something had to change. According to SLCL, the company “continued to service its debt obligations to the credino option but to enter into restructuring arrangements with the creditors.” That helped, because total income just was completely collapsing in the process, - According to SLCL, the total outstandBank of Khyber, Rs39 million to the Bank of Punjab, and Rs16 million to Soneri Bank. How did the company do this? Well, ‘hard work’, it told the SEP, and by “reaching realistic settlement with the creditors based So, what is the company’s game plan? SLCL has been in prolonged discussions for payment. “This will enable the company to - lion in respect of Sukuk-II hopefully in the coming months.” says SCPL. What is perhaps a little less concrete, and the cause of concern for the independent auditors, is everybody else. The company said it has reached an ‘agreement in principle’ with Soneri Bank “which is likely to take a couple of months to be formalized... furthermore we are also in negotiation with the Bank of Khyber for settlement of their dues on a realistic basis adopted in respect of other creditors.” To do this, the company’s board decided to sell off properties in Lahore to pay off the outstandings of Sukuk-II, Bank of Khyber and Soneri Bank in the next few months, DEBT RESTRUCTURING 34
© PressReader. All rights reserved.