Scheme of Arrangement Approved to Restructure PIACL
Staff Report
Two significant milestones were achieved in the restructuring of the Pakistan International Airlines Corporation Limited (PIACL) on the 20th & 21st of 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 privatization 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 a regulatory requirement by SECP to restructure the PIACL, the SoA was required to be approved by the shareholders and Creditors of the PIACL.
The blueprint 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 were endorsed by the Creditors. Thus satisfying two major requirements for the processing of SoA by SECP. PM Calls for Resumption of PIA Flights Between Pakistan and UK
The restructuring will deliver a significantly debt-lite PIA, with better cash flows, focused on aviation and providing the foundation for future growth to potential investors, while ensuring value creation for Shareholders.
