KARACHI: Hascol Petroleum Ltd postponed on Wednesday a previously adjourned meeting of its creditors scheduled for April 6, saying they require “additional time” to review the proposed Scheme of Arrangement and seek internal approvals.

The oil marketing company earlier told investors that its board had approved amendments to the Scheme of Arrangement, which have been agreed with “most of its bankers”.

Hascol has been in trouble since 2018 partly for making inaccurate entries in its financial accounts. It’s been in negotiation with all its lenders to restructure its entire debt of Rs54 billion. It’s now in the middle of seeking approval from creditors for its plan to rehabilitate the company through “restructuring/rescheduling, settlement and repayment” of financial obligations.

The company has designed a restructuring scheme that entails the settlement of the full amount to the satisfaction of lenders. It filed a scheme of arrangement with the Sindh High Court, which ordered it in November 2022 to convene meetings with banks for their approval.

Hascol Petroleum was supposed to reconvene the creditors’ meeting in the first week of April to present the modified scheme to its secured creditors for necessary approvals. The same was supposed to be submitted to the high court, binding the company and its bankers into a new financial structure.

Published in Dawn, April 6th, 2023