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

Textiles | On 19th Aug 2017

New fabric interfaces to interact with computers

As computer capabilities evolve, new fabric-based interfaces are...

Textiles | On 19th Aug 2017

Brazilian cotton prices drop in first fortnight of August

Cotton prices dropped in the Brazilian market in the first fortnight...

Apparel/Garments | On 19th Aug 2017

Target to acquire Grand Junction for faster deliveries

Target Corporation has announced that it has agreed to acquire Grand...

Interviews View All

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

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

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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

August 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
66.7%
No
16.7%
Skip
16.7%

Total Votes: 30

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
43.3%
No
36.7%
Skip
20.0%

Total Votes: 30

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
83.3%
No
6.7%
Skip
10.0%

Total Votes: 30

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
60.0%
No
10.0%
Skip
30.0%

Total Votes: 30


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search