Restructuring committee purposely delaying progress | Daily News
Ceylinco F&G and Fingara Depositors Association alleges:

Restructuring committee purposely delaying progress

The Ceylinco F&G Depositors Association alleges that the current restructuring committee appointed by the Supreme Court to look after the interests of the depositors and find an investor to bail out Ceylinco F&G and Fingara Company (FGPDL and FGRECL) is purposely delaying its progress.

According to President of Independent Depositors Association, C. Caldera, the Supreme Country recently requested to form a Special Purpose Vehicle (SPV) to coordinate with Sarath Subasinghe from ZTR Company and transfer assets of this company or come up with another solution.

ZRA Holdings was recommended to take over the failed F&G companies as per KPMG’s final report dated September 26, 2018. ZRA Holdings partnered with NLH Holdings to acquire the two companies by collectively showing their proof of funds to invest and revamp the said entities.

“Investor, Subasinghe, involved in the real Estate segment was to sell some of the properties according to the current market value and pay back the deportees. Under this agreement depositors in Ceylinco Property Developers were to receive 51% of their deposits while F&G depositors were to receive 61% of their deposit value.”

The investor was to then formulate a Share Issue and offer the balance in shares 49% and 39% respectably to the depositors of both companies compactly settling them. Subasinghe alleged that the restructuring committee had called for a Special EGM with the former Directors on March 24 where they had said they wanted more time to study the investor’s proposal.

“Calling for an EGM by this committee was ‘not mentioned’ by the Supreme Court and hence it’s a violation of the Supreme Court order,” he alleged.

Meanwhile when contacted by ‘Daily News Business’, ROSHAN FERNANDO (employed in one of the leading conglomerates in Sri Lanka), who was appointed to head the Committee by the Super Court said he was unable to comment on this without the approval of the Board members.

Although he promised six days ago to get a comment after contacting the Board nothing has materialized. There was also no response to the subsequent SMS that was sent by this writer requesting for a comment.

When some of the Ceylinco property companies folded up some 5,600 depositors had around Rs.8.3 billion deposits. Later around 10% of some of the depositor’s capital were paid due to the intervention of the Central Bank. Several depositors also committed suicide due to this issue.

Hence it’s dejected to note that a person/Board who were appointed by the Supreme Court to settle this issue is not responding to the media, to spell out the developments/progress to depositors as well as the public of a burning issue of this nature.


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