News Report
Alan Duncan, Chairman of Hascol Petroleum has said that it is nearing the conclusion of negotiations with bankers to strike a restructuring agreement.
Under the agreement, the company will replace short-term expensive debt with long-term affordable debt and some new equity.
He said in a statement at Annual General Meeting (AGM) on Tuesday.
He said that they would be able to announce an agreement after the conclusion of those negotiations.
Alan further hoped to announce a restructuring agreement in a bid to replace short-term expensive debt with long-term affordable debt and some new equity.
Chairman Hascol said that 2021 has been a dramatic year as Board had worked tirelessly to turn the company around.
He said that company had published the 2020 accounts.
They had cleaned them (accounts) up and corrected some previous entries which were not in line with high standards.
The company is now working hard on the 2021 quarterly accounts.
He hoped to be up-to-date with them within a few weeks.
Second, he said that they had changed the Company’s auditors.
Baker Tilly is now closely working with the company’s Finance Department on all accounts and processes.
It is not only Hascol to face a difficult year.
But all other OMCs had faced challenges of market conditions and the regulatory environment.
He also appreciated the government for taking positive steps on forex protection and retail margins.
The measures should help all companies in the sector, he added.
Alan admitted that the company faced the main challenge of tight that survived with the support of its major shareholder.
At present, the company bears a big burden of accumulated debt. He revealed that the company was negotiating with bankers to resolve this issue.
If we’re successful to mature Hascol restructuring and refinancing, the board is confident that it would open a new chapter in Hascol fortunes, he said.