Golden Key to seize and sell company assets
The Golden Key Credit Card Company Special Purpose Vehicle (GKSPV) is to seize and sell the assets of the company, its subsidiaries and former directors to make the repayments for depositors as soon as possible, Directors of GKSPV revealed.
1845 more GK depositors will be paid Rs. 100,000 each under Phase 3 of the repayment plan before the end of this year, GKSPV Director Dushanthi Hapugoda said.
The 3rd phase of the plan will be completed with this repayment, she said, adding that their intention is to pay 41 per cent of the total deposit of all depositors in cash by selling GK assets.
A sum of around Rs. 665 million has been paid to depositors so far, and the GK Task force is carrying out the seizure and sale of assets of the Golden Key Credit Card Company Ltd. with the subsidiary assets of former directors on the recent Supreme Court directive, she disclosed.
Ms. Hapugoda revealed that a buyer has stepped in to purchase the Ceylinco Hospital Services property with a partly built structure at Kirimandala Mawatha, Narahenpita which is valued at around Rs. 400 million. The buyer’s bid was more than the valuation, she said.
Former GK Director Padmini Karunanayake’s house at Polhengoda, two half-built houses at the ‘Nature’s Way ‘ Housing Scheme in Athurugiriya , 60 acres of teak plantation at Puttalam, a quarry at Narammala, 3 floors of Ceylinco House in Fort and a Hokandara property were available for immediate sale, she added. Further planning is being carried out to examine the business models of the GK subsidiaries in order to maximise income value which will support the future plans made for re-payment of the depositors, she said. Meanwhile at the hearing of the GK Fundamental Rights Case, Counsel V.K. Choksy appearing for the GK Task Force informed the court that the assets were valued between Rs. 7 to 8 billion and that after the sale of assets and shares there would be an amount of Rs.7.1 billion for the repayment of 40 per cent to the depositors.
The bench comprised Chief Justice Mohan Peiris, Justices K. Sripavan and Rohini Marasinghe.
At the commencement of the hearing, the Chief Justice said that he intends to conclude the case in the next “one or two hearings”.
Task Force Chairman and former Central Bank Deputy Governor Priyantha Fernando gave an assurance to court that they hope to complete the seizure and sale of GK assets before the end of this year.
Chief Justice Peiris directed the Attorney General’s Department to submit the report prepared by the Securities and Exchange Commission and the Central Bank’s Financial Investigation Unit on dealings between a Swiss Bank and the CIESOT Trust Fund, within the next two weeks.
The CIESOT trust fund has more than Rs.6 billion in assets which the Task Force plans to acquire and settle depositors. CIESOT (Pvt ) Ltd is the largest share holder in Ceylinco Insurance Company and presently holds 22.86 of the insurance company.
The matter was listed to be mentioned on July 7.