Debt settlement negotiations nearing conclusion: Hascol

KARACHI: Hascol is nearing the conclusion of debt settlement negotiations to settle the debt it has defaulted on, an official of the Hascol Petroleum Limited Company said on Tuesday.

Hascol arranged the annual general meeting on Tuesday to discuss the ongoing talks with its banker to settle its debt.

Hascol and its sponsors Vitol Dubai have reportedly proposed to settle the Rs54.5 billion loan over a period of 12 years, which Hascol obtained from 19 local banks and then defaulted on.

“The company is carrying a heavy burden of accumulated debt. Servicing that debt has cost as much as the scale of its total losses. In order to address this, the Company has been in detailed negotiations with its bankers,” Chairman of Hascol Sir Alan Duncan said.

“We believe we are nearing the conclusion of those negotiations and hope soon to be able to announce a restructuring agreement under which short-term expensive debt is replaced by long-term affordable debt and some new equity,” he added.

Duncan expressed the hope to succeed in the ongoing talks, saying that if the board of the company succeeded in the negotiations, it would mark the new opening of a new and better chapter in Hascol’s fortunes.

He said that the past year has been challenging not only for Hascol but many oil marketing companies (OMCs) faced such difficulties in the market, while commending the government steps on forex protection and retail margins which help all the OMCs.

Hascol and its sponsors Vitol Dubai in previous week proposed to settle the Rs54.5 billion loan over a period of 12 years, which Hascol obtained from 19 local banks and then defaulted on.

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