AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: The Board of Directors of Cordoba Logistics and Ventures Limited has passed several key resolutions via circulation on July 26, 2024, concerning significant changes to their financial agreements and corporate strategy.
The first resolution authorizes the amendment and superseding of an existing loan agreement between the company and its subsidiary, Cordoba Financial Services Ltd. (“CFS”), originally dated September 28, 2013. The modification facilitates the conversion of a substantial loan of Rs.113.4 million into equity shares of CFS valued at Rs.10 each. Additionally, this resolution defers the repayment of markup and other related financial liabilities, which were due to start from July 1, 2024, now postponed to July 1, 2025, with an early payment option available to CFS.
According to information available from the Pakistan Stock Exchange (PSX), the company has scheduled an Extraordinary General Meeting (EGM) on August 27, 2024, at the PSX Regional Office in Lahore. The meeting will address the conversion of the loan into equity and further amendments to the Loan Agreement to accommodate these changes effectively.
The second major resolution involves an amendment to another loan agreement with a shareholder, Mr. Danish Elahi, where the maximum lending cap will be increased from Rs.200 million to Rs.800 million. The terms of the loan include a markup based on 3 months KIBOR+2%, with the markup repayment also deferred to start from July 1, 2025.
These financial maneuvers are designed to enhance the company’s liquidity and strengthen its capital structure, providing Cordoba Logistics and Ventures with greater flexibility in managing its finances. The company ensures compliance with Section 199 and other relevant sections of the Companies Act, 2017, in these transactions.