GUTM remains non-operational as asset sale proceeds under court-sanctioned scheme

According to Mettis Global, Gulistan Textile Mills Ltd, listed on the PSX as GUTM, is disposing of its entire asset base under a scheme the Sindh High Court has sanctioned. The sale is meant to repay secured lenders, and the company does not currently envisage restarting production or business activity.

The quarterly filing showed the company was idle through the quarter, with no production or operations and no change from the prior period. The arrangement rests on Section 279 of the Companies Act, 2017, and creditors and shareholders approved it at meetings chaired by a court-appointed chairman before the Sindh High Court sanctioned it.

An Asset Sale Committee is carrying out the sale, while an Agent Bank will distribute the proceeds among secured creditors on a pari passu basis, which fully clears their claims. Once the sale is complete, the company will hold no assets, though it will look at strategic options subject to regulatory approvals and available resources.