Way clear for foreigners to buy Ittefaq Group units

Ittefaq Group
Lahore High Court

LAHORE: Lahore High Court Chief Justice Umar Ata Bandial on Thursday directed the sale committee to submit a written quotation about auction three units of the Ittefaq Group of Industries to recover Rs 3 billion defaulted loan obtained by the Sharif family from banks.

The CJ also directed the committee to also invite international buyers by giving advertisements in foreign newspapers. The honourable judge then postponed further hearing of the case until December 19.The three units, including Ittefaq Foundries, Ittefaq Brothers and Brother Steel Mills, were handed over by Sharif family to petitioner-banks to adjust the loan amount, but the banks rejected the family’s offer and demanded payment in cash.

A petition was filed by a consortium of banks, including National Bank of Pakistan, Habib Bank Ltd, United Bank Ltd, Zarai Taraqiati Bank of Pakistan, Muslim Commercial Bank, Picic Bank, First Punjab Mudarba, and Corporate Law Authority, in 1998 for winding up three units of the Ittefaq Group in order to recover about Rs 3 billion in loan from the Sharif family.

The banks had sought order for the recovery of their loan through auction of Ittefaq Foundries, Ittefaq Textile Mills and Khalid Siraj Industries as they had failed to fulfil their financial commitments made against loan given to them. Earlier, on the banks’ petition, a company judge of LHC had ordered the sale of these industrial units. – Dailytimes