GK in efforts to raise Rs.530 million amidst growing frustration
View(s):As the Golden Key Credit Card (GK) depositors frustration grew by the day, the GK Special Purpose Vehicle (SPV) is now in the process of raising its cash flow by around Rs.530 million by selling five major assets within the next two months, GK SPV Officials said.
These assets are the property and half built structure at Kirimandala Mawatha, Narahenpita; a GK property at Puttalam; a house owned by Ms. P.K. Karunanayake, former director of the company at Nandimithra Place Colombo 3; 500,000 non-voting shares of Blue Diamond Jewellery Worldwide; and 6,670,230 shares of The Finance Company to be transferred as per a court order from Ceylinco Investments Company. The GK SPV will go ahead with its ambitious plan of selling assets as they needed more money to settle depositors of the crisis-hit credit card company, its outgoing CEO Migara Handunge and Director Dushanthi Hapugoda told the Business Times.
If the company will be able to find this money then it would be possible to complete the repayment of phase 3 of the Central Bank action plan during the months of May and June this year, Ms. Hapugoda said.
The move came amidst concerns of a group of depositors that the board of directors is not capable of finding hidden assets of the collapsed company including its 38 subsidiary companies and selling it to realise money for the repayment process.
President of the GK Depositors Hope and Solidarity Organisation Jude Marco Perera and Malcolm de Silva, a leading activist of the GK Depositors action group, insisted that it is essential to appoint a depositors representative committee to extend their services in the efforts to realize GK assets and monitor the functions of the company. Mr. de Silva told the Business Times that the Presidential Secretariat has already issued a directive to appoint this committee but alleged that it is being blocked by the directors of GK SPV.