ECC likely to extend PKR 14.6 billion bail out to Pak Steel – Alfalah Securities Limited

Karachi, July 23, 2012 (PPI-OT): Economic Co-ordination Committee (ECC) of the Cabinet is scheduled to meet on Tuesday, July 24, 2012, to approve the bailout package of PKR 14.6 billion for Pakistan Steel Mills (PSM).

According to Alfalah Securities Limited, the package includes commercial funding of PKR 8.5 billion, PKR 5 billion already approved by the ECC and linked with the appointment of new CEO and PKR 1 billion as an interest free loan as a special case to clear SSGC liabilities. Overall, PKR 3 billion will be used to purchase raw material, PKR 8.5 billion for immediate liabilities creditors accrued and other liabilities, PKR 2.1 billion to pay mark up of one year on loans of PKR 17.5 billion and old liabilities of SSGC amounting to PKR 1 billion. The bailout plan is directed to revive the loss making company and streamline the cash position of PSM.