M/s Master Motors Limited (MML) has sought help from Ministry of Industries and Production (MoI&P) to get Permission to Mortgage (PTM) of property from Pakistan Steel Mills (PSM) against loans from a private bank, well informed sources told Business Recorder.
The company's Chief Executive Officer (CEO) Nadeem Malik has written a letter to the Ministry of Industries and Production, introducing a renowned industrial group of Pakistan namely Master Group of Companies, which was established in 1963 and is well known for MoltyFoam mattresses and household products in Pakistan.
Master Motors Ltd (MML) is a sister concern company of Master Group which is an automobile assembling facility being constructed in downstream industrial estate, Pakistan Steel, Bin Qasim, Karachi, for assembling passenger vehicles ranging from van, pickups, SIVs and cars with the collaboration of Changan International Corporation, one of China's leading automobile companies.
M/s MML recently acquired Greenfield status from the Government of Pakistan and now has a joint venture with Changan International Corporation for manufacturing of vehicles in Pakistan.
The CEO of MML, in a letter has claimed that the company has signed a project financing agreement with consortium of banks led by Faysal Bank Ltd to acquire financing for the construction of plant facility for which the company is required to submit the land mortgage documents of property in favour of Faysal Bank Ltd against the applied financing transaction as security.
In this regard, the company has formally approached Pakistan Steel for issuance of Permission to Mortgages (PTM) letter as per the clause assignment of indenture of lease, the subject clause is as follows: "The lessee shall not mortgage, assign, underlet of part with the possession of the demised premises or any part thereof for any purpose other than mortgage with banks and financial institutions for securing financing as specified in the lease which shall be subject to prior approval of the lessor."
According to CEO MCL, response from Pakistan Steel on company's request is still awaited, however, corporate office of Pakistan Steel verbally informed that PTM can only be issued by the Pakistan Steel after 2 years post commissioning/ completion of the project.
"The plant construction is 50% completed and machines have started to arrive. Installation of some of the plant and equipment has already commenced. We have already invested all our equity and need the loan amount to be released urgently so as to continue the construction work and also to import balance machinery and equipment. Delay in release of the loan amount is delaying our project," he added.
The company sought ministry's intervention in the matter so that it can get the required permission to mortgage approval from Pakistan Steel.
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