KARACHI: State-controlled Corporate and Industrial Restructuring Corporation (CIRC) and National Assets Leasing Corporation (NALC) have reached a financial settlement, under which the NALC will pay Rs10 million to the CIRC to revive business operations of this almost dead leasing company.
The Securities and Exchange Commission of Pakistan (SECP) has already issued a notice to this leasing company to wind up its business operation, however, this latest development will re-ignite business operations of the NALC.
The CIRC said: “In view of the facts that the SECP has cancelled the company’s licence and issued notice for winding up due to the non-availability of any debt coverage by way of a tangible security or personal guarantees, acceptance of borrowers offer of Rs10 million is recommended as full and final settlement of their liabilities subject to upfront payment on signing of the settlement agreement.”
Sources said that the Karachi-based leasing company obtained Rs40 million from then state-controlled Habib Bank Limited, but failed to retire its liabilities. After the privatisation of HBL, this liability was transferred to the CIRC.
Currently, the outstanding amount is Rs33.918 million and no assets of the company are available.
According to the CIRC, “the outstanding liability has considerably exceeded the contracted re-sale price”.