Ceylinco Shriram settles 60% of outstanding cash to 88% of the depositors
View(s):Ceylinco Shriram said this week it has successfully managed to make payments in cash to 5,084 of its investors, representing 87.7 per cent of the total 5,796 or over 60 per cent of their deposits, as at April 2014.
“This was achieved with the seventh tranche of the repayment process, which was completed in April 2014. The seven repayments totalled a mammoth Rs.2.8 billion, all of which was settled in cash,” the company said in a media release.
The balance 714 depositors, who represent 12.3 per cent of the total, received cash payments up to Rs.1.3 million per person. The payments have been made in conformity with the payment plan submitted by the Board of Directors of Ceylinco Shriram to the Courts and investors. The payment plan was formulated, with the interest calculated up to the time of preparing the settlement plan, and included in the repayment amounts, the company said.
“In February 2014, the Supreme Court too expressed its appreciation, saying that it recognised this as the best repayment plan implemented so far in Sri Lanka for failed financial and non-financial institutions, and placed on record, the enormous assistance given to the Court by all the parties involved, including the Central Bank, the depositors, the committee of Chartered Accountants, and the directors of the company,” the company said.
From the Celestial Towers project, being the biggest asset which was in possession of the company, a staggering Rs.800 million is due to Ceylinco Shriram, as repayment of the loan given to them, along with the interest due for this loan. This amount was to be utilised to settle depositors, as proposed in the repayment plan. In addition to the said loan given to Celestial Towers, 55 per cent of the ownership of the Celestial Tower project was held by Ceylinco Shriram Companies. If this stake could be realised at the present market value, the entire amount could be utilised to pay the investors, far beyond the promised 60 per cent, the company said in a release.