Two significant milestones were achieved in the restructuring of the Pakistan International Airlines Corporation Limited (PIACL) on 20th & 21st April, 2024 as the shareholders and creditors of PIACL approved the Scheme of Arrangement filed with the Securities & Exchange Commission of Pakistan (SECP). As a part of the privatisation process, the Federal Cabinet approved legal segregation and restructuring of PIACL, following which a Scheme of Arrangement (SoA) was filed in SECP on 28th March, 2024. As regulatory requirement by SECP to restructure the PIACL, the SoA was required to be approved by the shareholders and Creditors of the PIACL. The blue print of the restructuring was presented to the Shareholders of PIACL during the Extra Ordinary General Meeting held on 20th April 2024, which was overwhelmingly approved by the Shareholders with 99.97% votes casted favour. Likewise, in the Creditor’s meeting of PIACL creditors held on 21st April 2024, the restructuring plan and SoA was endorsed by the Creditors. Thus satisfying two major requirements for processing of SoA by SECP. The restructuring will deliver a significantly debt-lite PIA, with better cash flows, focused on aviation and providing foundation for future growth to potential investors, while ensuring value creation for Shareholders.
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