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Industries default on debt payments
Default cases surged in 1QCY21 despite schemes to get loans deferred and rescheduled
The NPLs to gross total loans had surged to 9.7% in January-June 2020 compared to 8.8% in the same half last year, according to the performance review. PHOTO: FILE
KARACHI:
Contrary to the government claim of rebound in industrial output, a number of industries in sectors including leading automobile and sugar have defaulted on paying off debt owed to banks in the quarter ended March 31, 2021.
The default cases have surged in the quarter despite offer of scheme to banks’ clients to get their loans deferred and rescheduled for one year or for more time period to cope with the Covid-19 pandemic.
The National Assembly Standing Committee on Finance and Revenue unanimously recommended that “The Corporate Restructuring Companies (Amendment) Bill, 2020,” maybe passed by the National Assembly.
The 54th meeting of the National Assembly Standing Committee on Finance and Revenue was held under the chairmanship of MNA, Faiz Ullah.
The Committee discussed “The Corporate Restructuring Companies (Amendment) Bill, 2020).” Deputy Governor State Bank of Pakistan (SBP), Jameel Ahmed, and President Bankers Association, Muhammad Aurangzeb, briefed the Committee about the requirements of the Bill. The Committee members have expressed their apprehensions regarding the implementation of this Act.
According to the objects and reasons of the proposed legislation, the existing institutional arrangements and legal processes for the revival and rehabilitation of distressed entities are time-consuming and inadequate, making the rehabilitation of distressed entities challenging.
Need to rehabilitate sick companies highlighted
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Justice Jawad said that the present government and the SECP has full support of judiciary
ISLAMABAD (Dunya News) – Given the stress caused on businesses and the resulting challenges, the Securities and Exchange Commission of Pakistan (SECP) organized a Webinar on Corporate Rehabilitation Act, 2018 (CRA) and the Corporate Restructuring Companies Act, 2016 (CRC Act) to create awareness about corporate insolvency laws.
Honorable Justice Jawad Hassan, Commercial & Constitutional Judge of Lahore High Court graced the event as chief guest.
These laws provide a structured process for distressed companies to attempt their revival through corporate or financial restructuring plans and provide a well-defined mechanism for resolution of non-performing loans.
SECP steps up efforts to help revive sick firms
Business
December 18, 2020
ISLAMABAD: Given the stress caused on businesses and the resulting challenges, the Securities and Exchange Commission of Pakistan (SECP) organised a Webinar on Corporate Rehabilitation Act, 2018 (CRA) and the Corporate Restructuring Companies Act, 2016 (CRC Act) to create awareness about corporate insolvency laws, a statement said on Thursday.
Honorable Justice Jawad Hassan, Commercial & Constitutional Judge of Lahore High Court was the chief guest. These laws provide a structured process for distressed companies to attempt their revival through corporate or financial restructuring plans and provide a well-defined mechanism for resolution of non-performing loans.