Home / Knowledge / News / Textiles / Azgard Nine in grip of liquidity crisis
Azgard Nine in grip of liquidity crisis
01
Jan '14
Pakistan-based Azgard Nine Ltd (ANL), one of the largest denim products company by sales in Pakistan, continues to be in the grip of liquidity crisis as there is strong resistance to fresh working capital loans from the lenders, who have also held up its asset sale plans.
 
Operating at sub-optimum capacities due to serious working capital crunch, the company posted a consolidated loss after tax of Pk Rs 427.72 million in quarter ended September 2013, although down from the year ago period when it had posted a loss after tax of Rs 1,270 million. Losses have been narrowed down on back of cost cutting and price changes.
 
The company’s debt restructuring agreement with the banks didn’t materialize completely, preventing ANL from achieving optimum utilization of production capacity. ANL was supposed to receive Rs 926.8 million for working capital purposes as part of the agreement through which the holding in Agritech Ltd (AGL) was disposed off. The company had decided to divest 100 per cent stake in AGL. However, it received only Rs 226.8 million as 20 million shares out of total number of shares to be sold were not released by Dubai Islamic Bank Pakistan Ltd.  ANL has now started second round of restructuring and is eagerly waiting for the rest of Rs 700 million.
 
In addition, the company has also faced challenges such as power outages and extreme increase in input costs.
 
The management of the company however hopes to turn around the affairs of the company through second round of restructuring, the development of an improved product mix and cost cutting.
 

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: American Apparel

Apparel/Garments | On 25th Feb 2017

Gildan to make some American Apparel products outside US

Gildan Activewear, which recently acquired US fashion brand American...

Courtesy: Kolon Sport

Apparel/Garments | On 25th Feb 2017

Kolon Sport to set up JV with ANTA for Chinese market

Kolon Sport, an outdoor gear and clothing brand of Korea based Kolon...

Designer Karishma Jumani with Niraj Jawanjal, founder and director of IIFW. Courtesy: IIFW

Textiles | On 25th Feb 2017

IIFW to bring together premium lingerie brands

India Intimate fashion Week (IIFW), dedicated to showcasing the...

Interviews View All

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search