Afiniti to Undergo Comprehensive Restructuring to Improve Its Financial Position

TRG Pakistan Limited, being a shareholder in The Resource Group International Limited (TRGI), on Friday announced that TRGI’s portfolio company Afiniti Limited (Afiniti) has agreed with its senior lenders to a comprehensive balance sheet restructuring plan that significantly enhances Afiniti’s financial position and growth prospects in the dynamic AI technology industry. According to the stock filing, the restructuring plan includes a significant reduction of Afiniti’s current senior debt and a multi-year extension of its debt maturity. It also includes the recapitalization of its balance sheet, with the senior lenders, existing preferred shareholders (including TRGI), and Afiniti management retaining significant equity interests in the business on a fully diluted basis. The restructuring plan will further enable significantly reduced cash interest payments, which, together with additional financing, will provide resources to Afiniti to accelerate growth. “This restructuring provides significant value and upside potential for TRG Pakistan, whose indirect economic stake in Afiniti will be substantially retained in percentage terms on a fully diluted basis. Further details will be provided, once shared by Afiniti, around the closing of the Afiniti restructuring transaction,” the stock filing added. The closing of Afiniti’s restructuring is subject to court approval in Bermuda and the United States and is expected to occur before year-end. The principal activity of the Company through TRGIL is to invest in a portfolio of investments primarily in the Technology, IT-enabled services and medicare insurance sectors. At the time of filing, TRG’s scrip at the bourse was Rs. 54.8, down 0.9 percent or Rs. 0.5 with over 2.24 million shares on Friday.