HUBCO and CPPA Enter an Agreement for Payment of Overdue Receivables
The Hub Power Company Limited (HUBCO) and the Central Power Purchasing Agency [CPPA] (Guarantee) Limited (Power Purchaser) have initialed an agreement in furtherance of the Memorandum of Understanding (MoU) dated 21 August 2020, according to a notification issued to the Pakistan Stock Exchange (PSX).
Under the agreement between the HUBCO and the CPPA, the payment of overdue receivables is an integral part of it, and the payment mechanism envisaged is two installments, with 40 percent of the overdue receivables payable within 30 business days of signing it (comprising a third of cash and two-thirds of the financial instruments of the Pakistan Investment Bonds (PIBs) and Sukuks), and the remaining 60 percent payable six months thereafter through the same method as that of the first installment.