![Government, lender banks conclude PIA’s commercial debt negotiations](https://photo-cdn.urdupoint.com/media/2024/03/_2/740x404/pic_1711724517.jpg)
Government, Lender Banks Conclude PIA’s Commercial Debt Negotiations
Fahad Shabbir (@FahadShabbir) Published March 29, 2024 | 08:01 PM
![Government, lender banks conclude PIA’s commercial debt negotiations](https://photo-cdn.urdupoint.com/media/2024/03/_2/740x404/pic_1711724517.jpg)
The 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 the entity’s restructuring for privatization
ISLAMABAD, (UrduPoint / Pakistan Point News - 29th Mar, 2024) The 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 the entity’s restructuring for privatization.
A statement issued by the PIACL on Friday said the step paved the way for filing of the Scheme of Arrangement (SOA) for legal segregation of PIACL with Securities and Exchange Commission of Pakistan on Thursday. The federal cabinet had approved the legal segregation plan of PIACL on February 6, 2024.
PIACL’s privatisation has been a priority agenda for the federal government, and above developments represent one of the most complex restructuring exercise undertaken to prepare PIACL for privatisation. This arrangement will help make a viable business case for private sector investment in the national carrier.
The domestic banks and financial institutions demonstrated firm commitment to the government’s privatisation initiative and extended their full co-operation in finalising the arrangement for PIACL’s commercial domestic debt.
Under the arrangement, PIACL’s Commercial domestic debt will be moved to PIA Holding Company Ltd., 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.
In order to manage the affairs of PIA Holding Company diligently, a seven-member independent board comprising of ex-State Bank Governor with prominent leaders from banking and other areas of expertise was notified this week by the Federal Government. The new board in its inaugural board meeting, held at Islamabad, endorsed the Scheme of Arrangement delineating the pathway for the privatisation of Pakistan International Airlines. Following the approval of draft SOA by PIACL and PIA Holding Company boards, the Scheme of Arrangement (SOA) for PIACL restructuring was filed with Securities and Exchange Commission of Pakistan (SECP) yesterday.
Following these significant milestone developments, Expression of Interest (EOI) from potential investors for privatisation of PIACL have been planned to be called in coming days.
Related Topics
Recent Stories
![Cricket: England v West Indies 3rd Test scoreboard](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019914.jpg)
Cricket: England v West Indies 3rd Test scoreboard
![Finance minister briefs Chinese officials on refor ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019922.jpg)
Finance minister briefs Chinese officials on reform agenda, engagement with IMF
![Finland says Russian vessel violated its territori ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019912.jpg)
Finland says Russian vessel violated its territorial waters
![Olympic opening ceremony under way on River Seine](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019266.jpg)
Olympic opening ceremony under way on River Seine
![West Indies' treble strike rocks England in third ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019264.jpg)
West Indies' treble strike rocks England in third Test
![Ukraine court orders detention of suspect in murde ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019262.jpg)
Ukraine court orders detention of suspect in murder of nationalist ex-MP
![Long queues, ticketing problems ahead of Paris ope ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019015.jpg)
Long queues, ticketing problems ahead of Paris opening ceremony
![Rana Sanaullah Khan joins Paris 2024 Olympics inau ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019638.jpg)
Rana Sanaullah Khan joins Paris 2024 Olympics inauguration reception
![Glowing tributes mark 69th birthday of President Z ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019637.jpg)
Glowing tributes mark 69th birthday of President Zardari at Governor's House
![Players unaware of spying scandal as Canada Olympi ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019635.jpg)
Players unaware of spying scandal as Canada Olympic coach sent home: official
![Naqvi hails Pak women cricketers for going down fi ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019013.jpg)
Naqvi hails Pak women cricketers for going down fighting against SL
!['Sabotage' on French rail network before Olympics: ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019634.jpg)
'Sabotage' on French rail network before Olympics: What we know
More Stories From Pakistan
-
NDMA Advisory: More Monsoon Rains-wind, Thundershowers from July 28-31
6 hours ago -
Armed Forces, tri services chiefs pay homage to Captain Sarwar Shaheed
6 hours ago -
Agriculture dept inks agreement with Bakhabar Kissan
6 hours ago -
Rana Sanaullah Khan joins Paris 2024 Olympics inauguration reception
6 hours ago -
Glowing tributes mark 69th birthday of President Zardari at Governor's House
6 hours ago -
Balochistan CM announce depoliticizing of police, Levies force
6 hours ago
-
PTI creating unrest, halting economic progress in country: MNA
7 hours ago -
ISSI holds webinar on “Elections in Iran : Regional and International Insights”
7 hours ago -
ECP defers written test for seats of election officers
7 hours ago -
PN assists in firefighting, evacuation efforts for stranded civilians of Kashif Centre fire incident
7 hours ago -
Women's rights protection is govt's top priority. Hina Parvez Butt
7 hours ago -
"We stand in solidarity with Azma Bokhari”: Secretary Women’s Parliamentary Caucus
7 hours ago