Fears of Touchwood disposing foreign assets
Fresh concerns that assets of troubled Touchwood Investments PLC are being disposed came amidst fears that its former management may have flown to Thailand. This follows the company failing to submit the necessary documents relating to its assets.
The company which was wound up on June 5 following a Commercial High Court order appointing a liquidator to take charge of the assets to settle the investors, has failed to submit details of its assets in a Statement of Affairs to the court appointed liquidator Sudath Kumar.
“There is a significant risk if there are assets outside the country if they would be disposed by the company without the knowledge of the investors,” the liquidator said in an interview with the Business Times on Friday. The main asset highlighted in the petitioner’s written submissions in the Touchwood winding up case related to properties in Thailand, which lawyers for the petitioner Avindra Rodrigo believes was worth over Rs.300 million.
Mr. Kumar was informed by the company’s former Chairman/CEO Lanka Kiwlegedera that he would submit the Statement of Affairs within two weeks in letter dated June 23.
However, this time period has now lapsed and the liquidator with Mr. Rodrigo has filed an application in court since he has not submitted the necessary information to commence the liquidation process.
In this respect the Commercial High Court issued an order on Friday for Mr. Kiwlegedere to appear in court on July 31. Mr. Kumar observed that in the letter sent by Mr. Kiwlegedera it appeared to him that the former management wanted to still take control of the assets and feared they would not reveal the assets of the company since he had signed the letter as Chairman/CEO and it was sent on a company letter head.
He noted that this was not possible since it was going against the court order for the winding up of the company.
In addition, he pointed out that since this letter was copied to the Securities and Exchange Commission and Colombo Stock Exchange it raises questions as to why the regulator remained silent on the matter.
The next date for the hearing and submission of the report by the liquidator in the Touchwood winding up case is scheduled for August 6.
At present over 100 investors had submitted their affidavits on their properties which the liquidator would use for the settlement of the dues to these persons upon the maturity of the agreements.
Touchwood Investments PLC said on June 23 that it has submitted a ‘notice’ of appeal in the Supreme Court against the winding up order issued by the Commercial High Court. The regulator was also informed of this move.
However, so far, no proper appeal has yet been submitted. The company has time within 60 days from the court order to do so.