What options do I have for restructuring a debt-laden business in Pakistan without triggering liquidation?

Question

I'm running a small manufacturing company with rising bank debt and weak cash flow. I'm exploring lawful debt restructuring options under Pakistani insolvency and corporate law to avoid liquidation while protecting employees and suppliers. What steps should I take first, and what are the typical timelines and costs involved?

Dawood Associates Law Firm · Accepted Answer

Options available for Business:
1. Corporate/Financial Restructuring
2. Formal Insolvency Proceedings

Immediate Steps:
(a) Internal Financial Review
(b) Appoint a Professional Restructuring Advisor
(c) Classify Debts

Debt Restructuring Options:
(a) Loan Rescheduling with Banks
(b) Supplier Extension Agreements
(c) Equity Infusion / New Financing

Formal Legal Mechanisms:
(a) Scheme of Arrangement / Compromise
(b) Informal Rehabilitation Framework

Timelines and Costs:
(a) Informal Restructuring (Negotiations)
(b) Scheme of Arrangement (Court)

Protecting Employees & Suppliers
Statutory and Regulatory Compliance
Best Strategic Recommendation

What options do I have for restructuring a debt-laden business in Pakistan without triggering liquidation?

Antworten von Anwälten

Dawood Associates Law Firm

Persönliche Rechtshilfe benötigt?

Verwandte Rechtsexperten