Azgard Nine Confirms Creditor Banks Seek Court Relief Over Unpaid Muzaffargarh Land Deal

Azgard Nine Limited (PSX: ANL) informed the Pakistan Stock Exchange on Monday that the agent banks of its creditors have approached the Lahore High Court (LHC) over delays in the payment for the Muzaffargarh Unit land sale, part of the company’s court-approved Creditors’ Scheme of Arrangement. In its stock filing, Azgard Nine disclosed that the application was filed before the same judge who originally sanctioned the Scheme. The agent banks have requested the court to either compel the winning bidder to rectify the default and pay the remaining sale consideration within a short, fixed timeframe, or to cancel the transaction altogether. Should the court opt for termination of the deal, the banks have asked to be allowed to refund the partial payment already received and initiate a fresh bidding process for the Muzaffargarh Unit lands, including plant and equipment. The unit’s assets are to be disposed of by June 30, 2025. The move, guided by the creditors’ legal advisors Ahmed & Qazi (A&Q), aims to ensure that either the current transaction is completed promptly or a more secure rebidding process is launched. Azgard Nine further clarified that if rebidding takes place, they will only consider bids with full upfront payments and will not entertain offers involving deferred payment structures.