Negotiations Concluded to Transfer PIA Domestic Banks Debt to PIA Holding Company

[Abbas Ali]

Commercial debt negotiations of Pakistan International Airlines Corporation Limited (PIACL) have been successfully concluded among the government, domestic lender banks and Development Finance Institutions (DFIs) as part of the airline’s restructuring for privatization.

Under the arrangement, PIACL's Commercial domestic debt will be moved to PIA Holding Company Limited established by the federal government as part of PIACL's legal restructuring.

The term sheet covering mutually agreed commercial aspects of loan transfer was signed yesterday between PIACL, PIA Holding Company and lender banks.

Following the approval of the draft Scheme of Arrangement (SOA) by PIACL and PIA Holding Company boards, the SOA for PIACL restructuring was filed with the Securities and Exchange Commission of Pakistan (SECP) yesterday.

Following these significant milestone developments, Expression of Interest (EOI) from potential investors for privatization of PIACL have been planned to be called in the coming days.

https://profit.pakistantoday.com.pk/202 ... otiations/

[Hassan777]

It would be interesting to see where the debt owed to foreign companies and Banks will go. The government may ask the party which ends up buying PIA to pitch in for that but I doubt anyone would agree on that.