A United Arab Emirates energy company won a judgement last month against Hascol Petroleum Ltd., a fuels and lubricants supplier in Pakistan, restraining Hascol from transferring shares of its subsidiaries until it pays a U.S. $9.5 million settlement from 2018.
The settlement resolved a dispute over money that Mena Energy claimed it was owed for deliveries of gasoil and fuel oil. Hascol, which is in the midst of attempting a financial turnaround, distributes lubricants in Pakistan for Germany-based Fuchs Petrolub SE.
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The ruling last month came from the High Court of Sind, a province of Pakistan that includes Karachi, the city where Hascol is based. It granted a request of Mena to restrain Hascol from transferring shares of its subsidiaries or from withdrawing or transferring credit balances of its bank accounts pending Hascol’s payment of the 2018 settlement.
The settlement was reached in a United Kingdom business and property court where Mena had taken its complaint that Hascol owed it for gasoil and fuel oil deliveries.
According to an article published by The News International, Hascol objected to the Sind court, arguing that a foreign court ruling on a settlement between the two companies could not be enforced until approved by the State Bank of Pakistan.
Hascol, which supplies fuels and chemicals as well as lubricants, is attempting to recover from losses sustained in 2019, according to a statement is issued in July of this year. The statement complained that unnamed parties were circulating false information about the company’s situation in an effort to damage it.
The statement said that the losses stemmed from extreme swings in international oil prices and foreign exchange and interest rate risk. The company appointed a new board chairman and a new chief executive officer to lead its attempted rebound and that it is currently working with a firm that specializes in restructurings.
The statement said the effort has been complicated by the impacts of the COVID-19 pandemic but that the company is making progress and hopes to return to profitability.