KARACHI: The Globe Textile Mills (O.E) Limited would shut down operations.

The company CEO Arif Haji Habib stated in a filing with the stock exchange on Wednesday that the board of directors of the company in its meeting on Sept 29 had decided to “close down the plant temporarily till Dec 31, 2015, because of the ongoing adverse market situation of the textile industry as well as the current liquidity position of the company.”

The CEO said that the board would review the decision in December. The Globe Textile Mills (O.E) listed on the stock exchange in 1982 has paid-up capital of Rs46.62m.

Currently it sits on the KSE’s ‘defaulter counter’ with ‘NT’ (no trading) noted against the scrip.

It may be recalled that on Sept 4, the Securities and Exchange Commission of Pakistan (SECP) had directed 77 listed companies on the ‘defaulter segments’ of the three stock exchanges to take immediate steps to rectify defaults relating to the listing regulations of the stock exchanges within 14 days.

“In case of non-compliance, the company or its chief executive and directors shall be liable to action under Section 159 (5) (a) and (c) of the Act, which includes penalties of up to Rs100 million in case of an individual and up to Rs200m in case of a company.

The failure to rectify the default can even lead to the winding up/liquidation of the company,” the regulator had announced.

The warnings were issued under Section 100 (b) of the Securities Act2015.

Published in Dawn October 1st, 2015

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