AWT SIGNS AGREEMENT with PC FOR PAYMENT OF LONG DUE PROCEEDS OF Rs.874.062 FOR SALE OF ACL WAH CEMENT
 

Islamabad, May 12, 2010

The Secretary Privatisation Commission Mr. Shahab Khawaja and the Chief Operating Officer Army Welfare Trust (AWT) Major General (Retd) Abdul Jabbar Bhatti signing an agreement for the settlement of long due proceeds amounting to Rs.874.062 million of Wah Cement here today. The Minister for Privatisation Senator Waqar Ahmed Khan and MD, AWT Lt. General (Retd) Imtiaz Hussain witnessed the ceremony.

With a view to facilitate the recovery of outstanding receivable the CCOP had directed to recover the principal amount with simple interest and waived charging of mark-up on mark-up. All the defaulting buyers were approached but their response was dismal. As the receivable of PC stood at Rs. 7.571 billion, the Minister for Privatisation Senator Waqar Ahmed Khan took note of the situation and directed to engage all the defaulting buyers afresh in the best business manner and to recover the dues forth-with in national interest. The Minister was of the view that once these cases were settled, PC would not only save lot of expenditure and efforts on litigation but these investors would be able to take part in our future transactions also.

Accordingly, ACL Wah management/AWT was approached for early settlement and to end fifteen years old on-going litigation. After numerous meetings and deliberations, an amicable agreement has been reached between PC and AWT. Despite crushing recession in cement sector, ACL would pay Rs.234 million upfront and Rs. 640.062 million through three post-dated cheques payable in eighteen months.

Similarly another transaction Hazara Phosphates (Pvt) Limited (HPFL) was acquired by Pak American Fertilizers Limited (PAFL) for a total value of Rs. 1.23 billion. Upon receipt of sale price, Share Purchase Agreement (SPA) was signed on 28-11-2008 and the buyer took-over the management control of HPFL. While the transactions achieved financial close, certain issues with regard to the claim of Sarhad Development Authority (SDA) and NFC remained unsettled.

Since2004, a suit for recovery of SDA claim was being contested between HPFL and SDA. After privatisation of HPFL, Privatisation Commission and Pak American Fertilizers, the buyer was also involved. After concerted efforts by PC, the case has been settled out of court and the buyer has paid Rs. 58.95 million to the SDA.