Dost Steels Secures Restructuring Deal with Bank Consortium

Dost Steels has entered into a restructuring agreement with a consortium of banks to shore up its financial standing. This arrangement is underpinned by a significant investment commitment from Muhabbat Khan and Zahir Khan.

According to the company’s filing with the Pakistan Stock Exchange (PSX) on Thursday, the two investors have pledged Rs2.08 billion and provided personal guarantees to ensure the repayment of the company’s outstanding debts.

The notice stated, “Muhabbat Khan and Zahir Khan have consented to invest Rs2.08 billion in the firm and have given personal guarantees to banks for the repayment of loans. Based on this, the company has executed a restructuring agreement with banks, stipulating that Rs2.08 billion will be repaid by the business in sixteen quarterly installments to the banking consortium.”

As part of the agreed restructuring with the banks, Dost Steels disclosed that Muhabbat Khan has already disbursed Rs50 million as an initial payment to the consortium.

Following this announcement, Dost Steels Limited’s share value saw an increase, climbing to Rs9.21, which is up by Re0.07 or 0.77%.

The company’s most recent financial results indicate that Dost Steels sustained a loss of Rs242 million in FY24.

Dost Steels Limited was initially established in Pakistan on March 19, 2004, operating as a private limited company under the Companies Ordinance, 1984, which is now the Companies Act, 2017.

The company’s core operations involve the production of steel, direct reduced iron, sponge iron, hot briquetted iron, carbon steel, pig iron, and special alloy steel in various forms and dimensions, all achievable with the existing facilities.